Dogecoin Addresses Skyrocket To Over 6 Million

Dogecoin has been a point of interest within the cryptocurrency world, and a mixture of positive and negative signals is setting its future. On one hand, the variety of Dogecoin addresses has been increasing. Alternatively, the recent technical evaluation gives less reason for optimism over the short to medium term. What must investors make of this dual narrative?

Dogecoin Rising Adoption: Silver Lining

Data from the newest charts on Crypto Day by day Trade Signals reveal that the variety of Dogecoin addresses with a balance has grown to six.56 million, up 20% from eight months ago. Such an adoption swing indicates that more persons are holding on to their DOGE for further gains. This has developed into a robust vote of confidence within the cryptocurrency while its price has been unable to achieve traction.

#Dogecoin Addresses Hit 6.56M
IntoTheBlock’s addresses metric highlights a continued increase in the entire variety of Dogecoin addresses with a balance. Within the last eight months, addresses within the ecosystem grew 20.1% to six.56 million from 5.43 million. Dogecoin price decline since… pic.twitter.com/A3im2BrcV0

— Crypto Day by day Trade Signals (@cryptodailyTS) August 16, 2024

This optimism, nonetheless, is somewhat offset by several short-term indicators. In response to IntoTheBlock, the value of Dogecoin has been trending down despite the regular increase in energetic addresses. The Fear & Greed Index currently rests at 25, which translates to “Extreme Fear,” a direct indication that the market is in a state of worry. This often results in increased selling pressure, further depressing prices.

Bearish Short-Term Forecast: Should You Be Apprehensive?

Technical evaluation by crypto price prediction platform CoinCodex indicates further bearish motion within the immediate future for Dogecoin. It’s estimated that by September 16, 2024, Dogecoin will drop by 14% to a price goal of $0.087023. That is supported by the indisputable fact that over the past 30 days, Dogecoin has only spent eight days positive, indicative of its downward trend.

DOGE market cap currently at $14.6 billion. Chart: TradingView.com

The value volatility has been high at 11% over the past month, indicating extreme swings in prices and uncertainty out there. This sort of volatility at these levels, together with such extreme fear out there, further indicates that there could also be more downward pressure on Dogecoin in upcoming weeks. In that case, this may increasingly not be time for one to take a position in DOGE.

Contradictory Signals: What’s The Real Story?

The contrast between the rising variety of Dogecoin addresses and a bearish price forecast is moderately puzzling. On one hand, the growing user base could possibly be viewed as an ultra-bullish sign: more interested people and prospects for further development. Alternatively, negative technical indicators and fearful sentiment of the market solid a shadow.

Source: CoinCodex