Dogecoin has become the most successful meme coin of all time. However, it, like every other cryptocurrency on the market, has received its fair share of blows. As a result, investor confidence in the meme coin has plummeted, prompting a considerable number of them to exit the asset. However, it appears that the worst is not over for Dogecoin, as tens of thousands more investors are withdrawing, depicting a fairly grim outlook for it, particularly in the short term.
The exit of 40,000 Dogecoin Holders
Dogecoin has been losing ground in terms of price over the last year, which has impacted its investors. As a result, investors have started exiting the meme coin in massive numbers. The most recent wave of this exodus included 40,000 DOGE holders who have now left the cryptocurrency.
This occurred over a ten-day period following the announcement that Dogecoin had lost over 700,000 investors. It is a direct result of a falling price with no end or reprieve in sight. After reaching an all-time high of $0.7 (R11.08) last year on the back of billionaire Elon Musk’s enthusiasm, the meme coin has struggled to maintain its gains. This has led to a loss of more than 70% of its all-time high in less than a year, and it continues to fall.
The total number of active Dogecoin holders reached around 4 million, the largest of any meme coin. However, as prices fell under $0.1(R1.58), investors were forced to abandon ship or risk losing even more of their capital.
However, as time has passed and the excitement around Musk’s Twitter proposal has worn down, Dogecoin has returned to its regular trend of lower highs and lower lows. It had reached a high of $0.17(R2.69) following the Twitter update but has since fallen down to $0.13(R2.06).
The meme coin is currently trading at $0.133 (R2.10), much below the 100-day moving average. Indicators for the digital asset point to strong sell pressure among investors, which will lead to further declines. The next level of resistance is at $0.136 (R2.15), while the best level of support is at $0.124 (R1.96).
If Dogecoin falls below $0.14 (R2.22) at the end of the trading day, it will most likely test this first support level in the midweek trading market. More investors are expected to exit the meme coin in the coming weeks. This is due to indicators indicating that DOGE may continue to trend lower in both the short and long term. As a result, investors will leave in search of more lucrative tokens.
DOGE doesn’t look good
The price of Dogecoin had risen in response to news that Elon Musk had been granted authorization to acquire Twitter. This recovery is largely due to Musk’s enthusiastic support for Dogecoin, and investors in the space think that the billionaire will continue to push the Dogecoin agenda on Twitter.