Dogecoin (DOGE) is up nearly 32%, but further corrections are expected as it still lacks bullish signals.
Not only are the broader markets opposed to a recovery, but even investor participation is predicting a decline.
Declining trend for Dogecoin holders
Dogecoin’s price points to the negative impact of declining investor confidence, which is reflected in their participation in the network. As can be seen from the daily active addresses, the average number of DOGE holders conducting transactions on the network has decreased to 57,000.
At the end of October 2023, only 41,900 active addresses were recorded per day, which is also the lowest number observed in the past six months.
Therefore, the lack of trust observed among Dogecoin holders further amplifies the possibility of a decline.
Read more: Dogecoin (DOGE) vs Shiba Inu (SHIB ): What's the difference?
The same downward trend can be seen in the Relative Strength Index (RSI). This indicator evaluates the magnitude of recent price changes to assess whether a security or asset is overbought or oversold. It oscillates between 0 and 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions.
RSI is currently below the neutral line at 50.0, below the downtrend line and entering bearish neutral territory. This is the largest decline for this indicator since the beginning of the year, indicating that weakness is strong and the correction could be longer.
DOJI PRICE PREDICTION: AHEAD OF ANOTHER DOWN
Currently trading at $0.146, Dogecoin's price is acting as resistance below the $0.151 line. Before the recent correction, Dogecoin was trapped in a rising wedge, and if the wedge were broken, Mimcoin would have headed towards its target of $0.127.
However, the failure occurred earlier than expected and the adjustment amplitude was less than predicted by the pattern. This left Dogecoin's price vulnerable to further declines, or a further 13% to $0.127.
Read More: Dogecoin (DOGE) Price Prediction for 2024/2025/2030
However, if the resistance level of $0.151 turns into support, Mimcoin will have a chance to nullify the bearish results. Dogecoin is likely to rebound again, surpass $0.160 and continue its recovery.
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