Dogecoin ‘active addresses’, the popular meme coin, dropped 22.1 percent in a week. In addition, new addresses decreased by approximately 46.3 percent. Also, the Dogecoin Telegram group is seeing a sharp drop in members, which indicates declining user engagement. So how will the meme coin price move from now on? Crypto analyst Konstantin Kaiser seeks an answer to this question.
Popular meme coin is losing users
The Dogecoin network has experienced a gradual decline in DOGE user engagement. This has been accompanied by a consistent drop in Telegram member numbers. This raises concerns about the sustainability of Dogecoin’s current downtrend. It also raises questions about its future trajectory.
Active addresses by 24 hours / Source: IntoTheBlockNew addresses have decreased by approximately 46.3% in the last seven days. Active addresses also fell by about 22.1%. In addition, DOGE addresses that do not hold coins decreased by 23.47%.
Vertical drop in Dogecoin Telegram Group members
The DOGE Group on Telegram has witnessed a noticeable downward trend in the number of users since 2022.
Number of Dogecoin Telegram users / Source: IntoTheBlockThis ongoing downward trend indicates that the decline in user engagement will continue.
Positive sentiment prevails for DOGE on Twitter
Over the past week, approximately 13,000 positive tweets were sent versus approximately 1,750 negative tweets. This shows that there is a predominantly positive mood on Twitter.
Twitter sentiment about DOGE / Source: IntoTheBlockThe number of meme coin addresses is on the rise
Meanwhile, the number of Dogecoin ‘total addresses’ continues to grow. This shows that there is a steady increase in user adoption and interest.
Number of DOGE addresses / Source: IntoTheBlockMajority of Dogecoin buyers are in profit
Over 40% of Dogecoin addresses are currently in a loss position. However, a notable subset of addresses made purchases earlier in the year and saw gains of around 56%.
Dogecoin addresses in Profit/Loss / Source: IntoTheBlockApproximately 40.78% of the addresses are still in the red, while 3.35% have reached the breakeven point.
DOGE price prediction: Analysis of the future trajectory
As you follow on Kriptokoin.com, Dogecoin price experienced an initial drop of over 27% two weeks ago. However, it has since recovered by about 31%. This week, the MACD indicator has been bullish after a bearish period. However, the medium-term trend remains bearish, as evidenced by the ‘death cross’ of the Exponential Moving Averages (EMAs) on the weekly chart.
Dogecoin price chart / Source: TradingviewAlso, the meme coin is currently facing notable Fibonacci resistance at around $0.069. If the price is rejected at this level, Dogecoin could potentially move towards the next support near $0.04914.
However, if the uptrend is broken, the next important Fibonacci resistance is expected around $0.08. A successful break of the golden ratio at $0.08 will indicate the completion of the corrective phase. So, it will increase the likelihood that Dogecoin will continue its upward momentum.
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