Dogecoin (DOGE), the largest meme coin, is struggling with a long-standing downward price action. However, as the growing number of investors shows: a group of investors are betting that the meme coin price will recover.
Koinfinans.com As we reported, as of October 22, Dogecoin has 4,454,487 investors. On the other hand, there were 4,365,551 registered investors on July 24. This indicates a growth of about 2%. According to CoinMarketCap, over three months, 88,936 people were added to the tenth-ranked cryptocurrency by market cap.
Besides, investor activity was not reflected in Dogecoin price action. According to press time, the asset is trading at $0.059 and has corrected over 16% in the past three months.
Why has the number of meme coin investors increased?
The mismatch between the price of DOGE and the growth of the number of investors can be attributed to several factors. First of all, we can say that the increasing number of investors indicates investors who believe that DOGE will rise. The expectation of DOGE’s regrouping is that the asset is sustained by whales. accumulation and the associated network activity that seeks to bring more benefits to the token.
The increase in the number of investors is also associated with the latest development regarding the acquisition of social media giant Twitter by Tesla CEO Elon Musk. It’s worth noting that Musk and the Dogecoin community have been known to interact in the past, and the possibility of the deal continuing has a potential impact on DOGE’s price trajectory. Musk expressed his support for DOGE while working with core developers. Musk’s previous tweets about Dogecoin drove the price of the meme coin up.
At the same time, if the deal does happen, the possibility of adding it as a payment method on the social media platform could be a bullish trigger for Dogecoin.
Finally, it is worth noting that the Dogecoin community predicts the value of the asset to increase in the future. The cryptocurrency community at CoinMarketCap predicts that DOGE will trade at $0.00716 on October 31, 2022. Overall, Dogecoin currently has no significant development in the network environment and this overall expectation is dependent on the broader market price action.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.