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Dogecoin price is at risk of collapse as wallet addresses holding DOGE take a hit

  • Dogecoin price could plunge in response to the decline in network activity and demand for the meme coin among investors. 
  • The number of wallet addresses holding Dogecoin recently dropped 14.5% to 3.89 million, indicating reduced demand for the meme coin. 
  • Analysts believe Dogecoin price could drop to $0.09 in the ongoing price cycle. 

Dogecoin price could plummet as the number of investors in the meme coin’s network drops. The meme coin’s price could continue its downtrend, according to analysts at FXStreet. 

Dogecoin price at risk of further drop as adoption declines

Based on data from IntoTheBlock, Dogecoin addresses have witnessed a significant decline, dropping nearly 15% from 4.55 million addresses to 3.89 million. The declining addresses indicate a consistent decrease in investors' interest and adoption of the meme coin. 

Proponents believe that Shiba Inu and Dogecoin have faced an uphill battle while their prices struggle to recover. The meme coins hit the doghouse, and analysts predict a further drop in the ongoing price cycle. 

Dogecoin-killer Shiba Inu and Dogecoin have suffered a double-digit price drop over the past two weeks. The thirteenth largest cryptocurrency by market capitalization is nearly 85% away from its all-time high, and analysts believe there is room for further collapse. 

Analysts have evaluated the Dogecoin price trend and presented a bearish outlook. FXStreet analysts argue that Dogecoin price is following the prior falling wedge, considered a bearish indicator for the meme coin. 

The decline in Dogecoin price has been extended for the most part, according to analysts at FXStreet. The trend line continues to get tested, and the Dogecoin price bounces off of it. Dogecoin price hit its lowest daily close over the last 300 days on March 13, 2022. Dogecoin price downtrend started in May 2021 and extended over the past nine months. 

Analysts believe the Dogecoin price could hit a downside target of $0.09. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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