dogecoin network has experienced a gradual decline in DOGE user engagement. On the other hand, this was accompanied by a consistent drop in Telegram member numbers.
This raises concerns about the sustainability of Dogecoin’s current downtrend. It does, however, raise questions about its future trajectory.
Active Addresses Dropped 22.1% in One Week
New addresses have decreased by approximately 46.3% in the last seven days. Active addresses also fell by about 22.1%. However, DOGE addresses that do not hold coins decreased by 23.47%.
The DOGE Group on Telegram has witnessed a noticeable downward trend in the number of users since 2022.
This ongoing downward trend indicates that the decline in user engagement will continue.
Positive Emotions Dominate 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.
Rising DOGE Address Number
Also, the number of DOGE addresses continues to increase. This shows that there is a steady increase in user adoption and interest.
While over 40% of Dogecoin addresses are currently in a losing position, a notable subset of addresses made purchases at the start of the year and saw gains of around 56%.
Approximately 40.78% of the addresses are still in the red, while 3.35% have reached the breakeven point.
DOGE Price Forecast: Analysis of the Future Trajectory
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 turned 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.
Besides, the DOGE is currently facing a notable Fibonacci resistance at around $0.069. If the price is rejected at this level, DOGE 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 increase the likelihood of DOGE continuing its upward momentum as it will mark the completion of the corrective phase.