Dogecoin (DOGE) Price Drops 4% Amid Meme Coin Slump, What’s Behind The Underperformance?

Whereas the remainder of meme cash throughout the sector equivalent to PEPE Coin and Dogfiwhat have delivered huge beneficial properties up to now few weeks, the biggest meme coin Dogecoin (DOGE) has been an underperformer. Within the final 24 hours, the DOGE price has dropped by one other 4% below $0.16 amid the droop within the broader meme coin sector.

What’s Behind the Dogecoin Underperformance?

Market analyst Ali Martinez has been intently monitoring Dogecoin’s value actions. He highlights a important resistance zone for DOGE between $0.166 and $0.171. If DOGE bulls can break by means of this stage, the meme coin might doubtlessly double in worth, concentrating on the subsequent resistance round $0.322.

Then again, whereas PEPE coin and WIF have been rallying, the demand for Dogecoin (DOGE) has dropped within the final week. In response to knowledge from IntoTheBlock, the day by day variety of addresses finishing transactions involving DOGE has plummeted by 18% over the previous seven days. Moreover, new demand for the meme coin has additionally decreased, with the variety of new addresses created to commerce DOGE dropping by 21% throughout the identical interval.

A decline in an asset’s day by day energetic addresses and new addresses suggests a lower in total buying and selling quantity. In response to Santiment’s knowledge, DOGE’s day by day buying and selling quantity peaked at $3.01 billion on Could 24 and has since dropped by 53%.

Commerce Buys 2 Million DOGE Name Choices

On Wednesday, Could 29, a cryptocurrency dealer purchased 2 million Dogecoin (DOGE) name choices with a strike value of $0.22. These name choices expire the subsequent month on June 14 that means that the favored meme coin should surge one other 31% from the present ranges with a purpose to be worthwhile.

The commerce follows a bullish day within the meme coin sector, spurred by a sudden enhance in Gamestop’s (GME) share value. Dogecoin reached a neighborhood excessive of $0.22 on March 2024 however has not exceeded that stage since then. Bernd Sischka, chief industrial officer at derivatives trade PowerTrade. mentioned:

“I feel altcoins have been lagging the current run-up in ethereum and for many merchants take a look at what ETH is doing and suggest potential strikes for altcoins. The ETF apporval drove the ETH rally however I feel with doge the wild card is that Elon Musk provides it to Twitter as some type of cost foreign money.”