Amid the mania seen in the coin sector, Crypto Daily Trade Signals has underlines a significant drop in demand for Dogecoin (DOGE), alongside a slight drop in prices. As a result of this decline, a horizontal channel, a technical pattern in which the price fluctuates within a limited range, was formed.
Dogecoin Price and Demand Seeing a Downtrend
Crypto Daily Trade Signals review examines the significance and impact of this drop on Dogecoin, the largest piece of money, and its network activities. On Thursday, the analyst highlighted a pessimistic shift in demand for DOGE, including more than 18% over the past week, followed by a 1% drop in the crypto asset’s price.
According to the expert, the price of DOGE has been fluctuating within a limited range due to the recent drop in demand. In addition to DogecoinWith the price oscillating within a narrow range, a horizontal channel has appeared.
The message said:
The demand for DOGE has decreased. This caused its price to trade in a range. Demand for Dogecoin (DOGE) declined last week, according to on-chain data. This drop in DOGE network activity caused its price to oscillate within a narrow range, forming a horizontal channel.
Horizontal channels are called trendlines and are used to represent the price range between the upper resistance line and the lower support line. They can also be called sideways trends or price ranges, and they do this by joining varying pivot highs and lows.
Other key momentum indicators for DOGE indicate that neither buyers nor sellers are in control of the market, due to the decline, which could impact the trajectory of the memecoin and cause consolidation for DOGE.
Daily Cryptocurrency Trading Signals reported that transactions carried out daily by DOGE also saw a decline following pessimistic demand. Data from IntoTheBlock shows that the daily number of transacting addresses fell by 18% over the past seven days.
On a related note, there has been a decline in new demand for the digital asset, indicating a decrease in interest and adoption among crypto investors. IntoTheBlock also claims that there were significantly 21% fewer new addresses created for DOGE trade throughout the period examined.
DOGE set to double price hike
Although DOGE saw its prices drop due to the development, Ali Martinez previously Underlines the possibility that its price will double soon. According to the analyst, Dogecoin, at the time of prediction, was facing huge resistance between $0.166 and $0.171.
Martinez noted that more than 75,000 addresses have acquired around 10 billion DOGE at the aforementioned resistance level. However, if the asset manages to rise above this level, its price could double, with $0.322 being the next significant barrier.
Currently, Dogecoin is trading at $0.1606, reflecting a 0.77% increase over the past 24 hours, with a 24-hour trading volume of $1.09 billion. Its market volume, valued at $23.21 billion, also shows a similar percentage increase over the past day.
Featured image from iStock, chart on Tradingview.com
