Despite A Stormy Market, Dogecoin Addresses Skyrocket To Over 6 Million

Christian Encila

10 months ago

3 mins read

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Dogecoin has been a focal point in the cryptocurrency world, and a mix of positive and negative signals is setting its future. On one hand, the number of Dogecoin addresses has been increasing. On the other hand, the recent technical analysis 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 latest charts on Crypto Daily Trade Signals reveal that the number of Dogecoin addresses with a balance has grown to 6.56 million, up 20% from eight months ago. Such an adoption swing indicates that more people are holding on to their DOGE for further gains. This has developed into a strong vote of confidence in the cryptocurrency while its price has been unable to gain traction.

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

— Crypto Daily Trade Signals (@cryptodailyTS) August 16, 2024

This optimism, however, is somewhat offset by several short-term indicators. According to IntoTheBlock, the price of Dogecoin has been trending down despite the steady increase in active 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 leads to increased selling pressure, further depressing prices.

Bearish Short-Term Forecast: Should You Be Worried?

Technical analysis by crypto price prediction platform CoinCodex indicates further bearish action in the immediate future for Dogecoin. It is estimated that by September 16, 2024, Dogecoin will drop by 14% to a price target of $0.087023. This is supported by the 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 price volatility has been high at 11% over the last month, indicating extreme swings in prices and uncertainty in the market. This kind of volatility at these levels, along with such extreme fear in the market, further indicates that there may be more downward pressure on Dogecoin in upcoming weeks. In that case, this may not be a good time for one to invest in DOGE.

Contradictory Signals: What’s The Real Story?

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

A falling wedge that usually has a bullish bias in price action has dominated Dogecoin recently. Though this is the case, considering market conditions, such a breakout looks unlikely in the near future. In the setting of the resistance at $0.11, analysts are not very sure that it shall be reached due to the existing bearish sentiment.

Dogecoin is in a mixed-signal situation at the moment. While the adoption continues to increase, the short-term technical analysis leans bearish. The Fear & Greed Index, coupled with the recent price performance and high volatility, is all indicating that the market does not favor Dogecoin at this point.

Featured image from ZyCrypto, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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