Dogecoin (DOGE), which used to be a favorite among meme coin fans, has lost a lot of value. Investors are shocked by their losses and don’t know what will happen next with the popular cryptocurrency.
DOGE dropped by a remarkable 13.64% in just 24 hours when strange things happened. It was one of the most significant drops in recent memory. Before the sudden drop, Dogecoin went through a meteoric rise that saw it pass the 20-cent mark and send its loyal fans into a frenzy of hope.
Dogecoin’s Plunge Spurs Investor Uncertainty
Buyers are still trying to figure out what to do about the effects of this price drop that has never happened before. On March 28, Dogecoin got very close to $0.2287. That was the first sign that something was problematic. It began to go down, with lower lows and lower highs. This is a sure sign that a bearish trend is about to start.
A Chaikin Money Flow (CMF) of 0.04 showed that there was some buying pressure, which was an insignificant indication of hope. However, the flow of capital was not enough to stop the falling prices. So, some traders who like to take advantage of opportunities saw the downturn as a great time to buy, even though the future was unsure.
The relative strength index (RSI) showed a bad picture. Dogecoin was stuck at 33.17, which is very close to being overdone and a sign that prices will soon fall even more. The freefall of Dogecoin was felt all over the world. Coinglass said that long-term deals worth a remarkable $20 million were completed in just one day.
Adding to the problems, the rise in short holdings against Dogecoin over the past few days could make people even more bearish. The slowing down of Dogecoin trade adds to the general feeling of unease. The fact that there are fewer active addresses shows that people are losing interest in the once-bustling network.
