Dogecoin price remains largely lull even after news of Elon Musk scoring a win against a potential lawsuit involving the coin hit the crypto space. The price of DOGE dropped by 0.9% in the last 24 hours to trade at $0.10, further throwing investors into more uncertainty. An analysis of the DOGE on-chain metrics sheds more light on this uncertainty as the metrics reveal mixed sentiments among traders and investors. DOGE price continues to consolidate as it has for the last three days. However, a surge to $0.13 is possible if market conditions change.
Social Dominance Off the Charts, Dogecoin Price Next?
Data from Santiment shows that the DOGE social dominance surged to a 3-month high, indicating that cryptocurrency is gaining significant attention and discussion across social media platforms. DOGE also had more positive discussions than negative, which could lead to potential bullish momentum.
Additionally, Dogecoin active addresses hit a two-week high, indicating that more users are engaging with the meme coin, which is usually a positive sign of growing interest and usage.
However, combined with the Dogecoin price, which has mostly stagnated over the last three days, this metric suggests the market is currently still in a state of indecision. Investors might be waiting for more significant news or developments before making substantial moves.
The DOGE price Daily Active Addresses (DAA) divergence was negative, dropping to a monthly low of -57.69%. It indicates that the price of a cryptocurrency is moving in the opposite direction of its daily active addresses.
There is also a discrepancy between the price of DAA, which is down, and the social dominance, which recently spiked. The high social dominance might be driven by speculative interest from the news of Elon Musk’s lawsuit dismissal. Investors and traders might be talking about the asset but not necessarily engaging with it through transactions.
DOGE Price Technical Analysis
A deep analysis of the 30-day Coinglass Liquidation Heat Map shows there are currently more Shorts than Longs, and there are significant sell-and-buy walls around $0.1023 and $0.0925, respectively.
The imbalance simply means the market is overall bearish on Dogecoin price, and the bears are anticipated to prevail in the end. However, the gap between the total amount of Shorts and Longs is small and rapidly closing, indicating that the sentiment could change to bullish at any time, sending the price to $0.13.
A deeper analysis of Coinglass data on open interest (OI) and price changes shows traders are closing their long positions, which is bearish because when they do, they tend to open short positions.
While a surge to $0.13 is possible, Dogecoin price prediction shows a 6.3% drawdown is possible for DOGE to use $0.0935 as a launch pad to higher prices. If this support doesn’t hold, Dogecoin could drop further to $0.8.
Frequently Asked Questions (FAQs)
Although Elon Musk’s lawsuit brought attention to Dogecoin, the price remains stagnant, dropping by 0.9% to $0.10 in the last 24 hours. On-chain metrics reveal mixed sentiments among traders and investors, causing uncertainty and lack of significant price movement.
Dogecoin social dominance has reached a three-month high, indicating increased discussion and attention on social media. This often signals potential bullish momentum, especially when there are more positive discussions than negative ones.
Dogecoin active addresses have hit a two-week high, showing increased engagement with the coin.
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Evans Karanja
Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
