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Dogecoin's price could dip below $0.10 amid trading signals

Dogecoin's price could dip below $0.10 amid trading signals

GrafaGrafa2024/09/12 03:55
By:Mahathir Bayena

Dogecoin (CRYPTO:DOGE) is showing signs of a potential price drop below $0.10 as market sentiment remains uncertain. 

Two lesser-known but significant metrics, Mean Dollar Invested Age (MDIA) and the Address Birth-Death ratio, suggest that the meme coin may face further downward pressure if current trends persist.

The Mean Dollar Invested Age (MDIA) is an indicator that tracks the average age of every dollar invested in Dogecoin. 

A rising MDIA generally indicates that investors are holding onto their coins for longer periods, reflecting confidence in the asset. 

However, a declining MDIA often signals increased trading activity and potential sell-offs. 

Recent data from September 8 shows a sharp decline in MDIA for Dogecoin, indicating heightened trading and less long-term holding. 

This trend could leave DOGE vulnerable to a price drop below $0.10, as selling pressure outweighs new investment.

Another key metric that supports the bearish outlook is the Address Birth-Death ratio. 

This ratio measures the number of new wallets created compared to those that are selling off all their coins and effectively "dying." 

A higher ratio indicates more adoption and interest, while a lower ratio suggests more exits from the market. 

Currently, the Address Birth-Death ratio for Dogecoin has declined to 0.11%, implying a higher rate of exits than new entrants. 

This trend could also contribute to a decline in DOGE’s price as fewer new buyers enter the market.

Dogecoin recently broke above its descending triangle pattern on the daily chart, which is generally a bullish indicator. 

However, the price struggled to maintain momentum and faced resistance near the $0.11 mark. 

If the price continues to be rejected at key resistance levels and falls below the 61.8% Fibonacci retracement level, Dogecoin could see a further decline, potentially heading towards $0.091.

At the time of reporting, the Dogecoin (DOGE) price was $0.1026.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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