Dogecoin became the most successful meme coin last year, but now it is on the verge of a cliff with the loss of thousands of investors.
After reaching an ATH at $0.7 last year thanks to the FOMO effect triggered by billionaire Elon Musk, this meme coin has lost 70% of its value from the above ATH level in about a year or more. come here and continue to plunge without braking.
The number of Dogecoin holders once peaked at nearly 4 million, the highest of all meme coins. But when the price dropped to $0.1, investors immediately abandoned the Dogecoin ship before they lost more money.
The price of Dogecoin once skyrocketed after the news that Elon Musk bought Twitter
The price of Dogecoin has skyrocketed following the news that Elon Musk has been licensed to buy the social media giant – Twitter.
The main cause of this recovery stems from the fact that Musk is an ardent supporter of Dogecoin. Therefore, investors in the crypto space believe that the billionaire will continue to design promotions for Dogecoin on Twitter.
However, as time passed and Musk’s Twitter news cooled down, Dogecoin returned to its usual trend.
DOGE bounced to $0.17 after the Twitter event but since then, the price has corrected down to $0.13.
This is because community confidence in the meme coin has dropped significantly, leading to a large number of investors withdrawing from these risky assets.
Tens of thousands of investors leave Dogecoin
However, it seems that the worst is not over for Dogecoin as tens of thousands of other investors are still fleeing DOGE coin, painting a rather bleak future in the short term.
Dogecoin has been depreciating since the end of last year, making investors restless. The most recent migration saw over 40,000 DOGE holders move out of crypto. This happened over a ten-day period, following the news that Dogecoin lost 700,000 investors.
That is the result of the DOGE price plummeting continuously for many days without any sign of ending or delay.
Perhaps in the coming weeks, the number of investors exiting this meme coin in search of more profitable tokens will continue to increase. In fact, all technical indicators show signs that DOGE may continue its downtrend in the short term and even the long term.
DOGE will continue to reduce the price
Currently, this meme coin is struggling in the $0.133 price zone (May 4, 2022) and continues to trade below its 100-day moving average. Negative technical indicators will only increase selling pressure on investors, triggering further downturns.
Its next resistance lies at US$0.136 and support may exist at US$0.124.
If Dogecoin closes below $0.14 later today it means it is testing this first support in the midweek trading market.