Dogecoin (DOGE) price started its downfall as quick as its uptick began amid high retail euphoria stemming from the Twitter acquisition.
Meme tokens like Dogecoin and Shiba Inu (SHIB) have been volatile to larger market price changes. So, it should come as no surprise so see DOGE price depreciate by almost 50% in one week after charting a multi-month high.
DOGE price has been on a rollercoaster ride for traders and investors in the past month. As the Elon Musk-fueled meme coin rally finally ended, Dogecoin price started its downward spiral falling from a high of $0.158 on Nov. 1 to $0.087 at press time.
With price action still in disarray, here’s what on-chain metrics said about DOGE price.
Dogecoin Network Vibrancy Falls
Dogecoin has never been much into silent rallies, in fact, most DOGE price upticks have coincided with high retail euphoria and social volumes. When DOGE price tested the $0.158 level on Nov. 1, social volumes and weighted social sentiment also peaked.
However, social metrics were back to the lower levels as Musk’s Twitter acquisition excitement faded. Dogecoin’s weighted social sentiment was trending in the negative territory at press time.
Furthermore, daily trade volumes, after spiking to all-time high value in early Nov., also demonstrated a pullback.
Daily active addresses for DOGE also lost 50% value since Nov. 1, further indicative of fewer participants.
On Nov. 10, Age Consumed indicator presented a massive spike showing over 780 billion old coins being moved.
A spike in Age Consumed indicator usually presents old coins being moved on chain either to redistribute or for sell-offs. Significant Age consumed spikes could be a large early investor selling their tokens, which often results in a parallel price decline.
However, older tokens can also be moved to shake up the market and cause short-term gains. In the case of DOGE, a short-term spike in price did occur, but with price action rather volatile and macro-market dependent, sustaining these gains could be tricky for holders.
Short-term Traders Exiting?
The UTXO Age metric for Dogecoin presented a major drop in short-term holders. UTXO Age metric is helpful to understand long-term market cycles. Age metrics showed a drop in one-month to three-month addresses by almost 41%.
A drop in short-term UTXOs presented that short-term traders are leaving the market and less new money is coming in relative to historical volumes.
With short-term holders missing in action, DOGE price recovery could take time. Recently, Analyst Rekt Capital also presented a long-term bearish view for DOGE price. The analyst highlighted that since DOGE rejected the green monthly resistance despite decent bullish momentum, chances of a swift move upward could be tough.
In and Out of Money Around the price Indicator showed a strong support at the $0.08 mark where 43,760 addresses hold 12.47 billion DOGE.
However, in case of the bearish invalidation if price takes a turn for the better, the $0.10 level can act as the next resistance for DOGE price.
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.