Dogecoin Price Forecast: DOGE In Dilemma As New Addresses Hit A New 3 Month Low
- Dogecoin price remains at the $0.2 inflection point as downward momentum threatens.
- The 50 SMA and the 200 SMA cap the DOGE's upside, narrowing all chances of recovery.
- Dogecoin's network growth continues to drop as investors count losses.
Dogecoin's pivotal price action at $0.2 has stretched into August and does not seem to be coming to an end. Price action, either up or down, is limited by the massive resistance slightly above $0.2 while the downside is protected marginally under the same level.
As the never-ending tug of war between the bulls and the bears continues, investors are left bleeding longer than they expected.
Dogecoin Behaves Like A Meme Coin
It is often believed that meme coins tend to follow the social wave and will rally when discussions around them are highest. With Dogecoin becoming a "sleeping giant" in the market, fewer people are talking about it.
Elon Musk, the self-proclaimed "Dogefather," has been quiet about the cryptocurrency since the B Conference in July. At the time, Dogecoin spiked from July lows of $0.16 to $0.23. Currently, there isn't much to write home about concerning fundamentals and development. However, Musk continues to believe and call for an upgrade that would make Dogecoin the most used cryptocurrency globally.
Where Is Dogecoin Price Headed?
The four-hour chart shows DOGE trading below all the key moving averages; the 50 SMA, the 100 SMA, and the 200 SMA. A break above these moving averages could trigger the bullish side of the coin and perhaps bolster it toward $0.24. However, the prevailing picture is slightly bearish, with losses likely to increase in the near term.
A daily close under $0.2 may validate the downtrend and pull DOGE to the short-term support at $0.19. If push comes to shove, Dogecoin may retest the primary support at $0.16 before other significant recovery attempts are made.
DOGE/USD four-hour chart
IntoTheBlock's "Daily Active Addresses" model shows that the number of new addresses created on the Dogecoin has been on a gradual slope over the last three months. Following a three-month high of 104,000, only an average of 20,000 addresses has been created over the last few days.
Dogecoin Network Growth Chart
It is worth keeping in mind that network activity dwindles as the addresses joining the network fall. Therefore, DOGE's recovery continues to become an uphill task. On the other hand, a slight increase in the overhead pressure would send DOGE spiraling further.