• Dogecoin price, even on May 23, failed to note any recovery despite Bitcoin and Ethereum both marking a green candlestick.
  • Investors seem to be losing their faith in recovery as DOGE holders' pessimism is at a two-month high.
  • Consequently, in the last week, mid-term holders have dumped nearly 8% of their supply, which was picked up by short-term holders.

Dogecoin price has stood its ground over the last 24 hours while the cryptocurrency leaders Bitcoin and Ethereum made gains. The overall lackluster performance of the meme coin has pushed DOGE holders to the brink of losing their confidence in an asset that was once hailed as "the next big thing".

Dogecoin price remains unchanged

Dogecoin price has made virtually no attempt whatsoever to initiate a recovery over the last two weeks. Trading at $0.078, the meme coin has been moving under the 50-day Exponential Moving Average (EMA) since the 17% crash of mid-April, which now acts as the next key barrier. The weak macroeconomic conditions are certainly impacting, but DOGE holders' pessimism has been growing since the last month.

DOGE/USD 1-day chart

DOGE/USD 1-day chart

Investors are rapidly losing their confidence in the meme coin. The lack of green candlesticks has resulted in Dogecoin holders' weighted sentiment slipping below the neutral mark, suggesting a bearish outlook toward the digital asset.

Although Dogecoin investors have exhibited such pessimism in the past, this particular instance is the longest stretch of growing bearishness in their behavior. This has led to the investors offloading their holdings in order to minimize their losses. The biggest chunk of this selling came from one of the most influential cohorts at that.

Dogecoin sentiment

Dogecoin sentiment

The mid-term holders or "Cruisers" are the group of investors that have held onto their supply for a period longer than a month and less than a year. Their actions, in a way, impact the price since these 1.2 million addresses collectively own over 53% of the entire circulating supply.

Their holdings used to be much larger, around 61%, up until a week ago, but since the Dogecoin price stopped showing signs of recovery, these investors decided to offset their losses. As a result, 7% of their supply was dumped, which was then picked up by short-term holders who represent supply younger than a month.

Dogecoin supply distribution by time held

Dogecoin supply distribution by time held

Thus, loss of conviction from such holders does leave a bearish impact on not just the price but the investors' outlook as well. And if Dogecoin price fails to recover soon and instead continues to trail around $0.078, this selling could go up a notch.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP