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Dogecoin, the cryptocurrency market’s most popular humour coin, has been in a slump for more than two months. The cryptocurrency failed to revive itself following the SNL debacle, and it appears that the self-proclaimed “DogeFather” has also lost most of his abilities. In fact, DOGE was just hanging on to its position on CoinMarketCap.
At press time, the cryptocurrency was ranked ninth and was trading at $0.1761. Right now, the community’s $1 ambition, which previously looked attainable, is exceedingly improbable.
Why has DOGE recently underperformed? Without a specific use case, this alt was based only on conjecture and the enthusiasm generated by its community members on social media. But, in recent weeks, even it has been clearly dropping, with the same nowhere near its May highs.
Another key explanation for the lack of activity in DOGE’s price might be the inactive status of the altcoin’s traders. The number of active traders dropped by more than half in just over 75 days.
In May, for example, almost 713k trading addresses were active. The figure fell to 312k last month, and at the time of writing, it was just 297k.
Surprisingly, cruisers (market players that keep their coins for 1-12 months) currently rule the DOGE market. The 1.25 million active addresses in May increased to 1.81 million in June and were at 1.80 million at the time of writing.
So, what does this new pattern imply? Market participants who were previously traders have now transitioned to cruisers. Because the price has been declining, these players have been unable to record profits and extend their stay in the market.
Furthermore, the “In/Out of the Money” indication demonstrates the non-profitability. The measure revealed that around 73.41 percent of addresses were out of money. This means that the press time price of DOGE was significantly lower than the average cost at which the currency was purchased.
To add salt to DOGE’s wounded price, the number of large transactions also dropped. On 15 July, only 1.23k large DOGE transactions took place while the same during the latter half of April ranged from 2.2k to 11k. Additionally, over the last few days, the number of bears outnumbered their bull counterparts which, again, was not a good sign for DOGE’s price.
Only when traders return to DOGE’s arena will the number of transactions grow, the bulls regain dominance, and the losses be erased. In retrospect, all of this would lead to an upswing. Until then, it appears like DOGE’s health will continue to deteriorate, and even Musk may be powerless to stop it.