Despite the market turbulence, the number of Dogecoin addresses has reached over 6 million

Dogecoin has attracted a lot of attention in the world of digital currencies and a combination of positive and negative signals determines its future. On the one hand, the number of Dogecoin addresses is increasing. On the other hand, current technical analyses do not offer any reason for optimism in the short and medium term.

According to new data from Crypto Daily Trade Signals charts, the number of Dogecoin addresses with balances has reached 6.56 million, up 20% from eight months ago. These changes show that more and more people are holding their Dogecoin to earn more profits. This issue is considered a question of trust in this digital currency even though its price has not yet reached a favorable position.

Dogecoin Addresses Hit 6.56 Million

IntoTheBlock’s Address Index shows that the number of Dogecoin addresses with balances continues to rise. Over the past eight months, the number of these addresses in the ecosystem has increased by 20.1%, from 5.43 million to 6.56 million. However, the decline in Dogecoin’s price continues despite the increase in active addresses. The Fear and Greed Index currently stands at 25, indicating “high fear,” meaning the market is in a state of fear. This usually creates more selling pressure and pushes prices even lower.

Short-Term Forecast: Should You Be Worried?

Technical analysis from cryptocurrency price prediction platform CoinCodex suggests that more downside is expected for Dogecoin in the near future. By September 16, 2024, the price of Dogecoin is expected to decline by 14% and reach a price target of $0.087023. This prediction is supported by the fact that the price of Dogecoin has only increased for eight days in the last 30 days and then continued to decline.

Price volatility was 11% last month, indicating extreme price volatility and uncertainty in the market. This type of volatility at this level, coupled with high levels of market fear, suggests that there could be more bearish pressure on Dogecoin in the coming weeks. In this case, it may not be the right time to invest in Dogecoin.

Conflicting Signals: What is Reality?

The contrast between the growing number of Dogecoin addresses and the downward prediction of its price is troubling. On the one hand, the increase in the number of users can be seen as a very positive sign: more and more people are interested in Dogecoin and there are prospects for further development. On the other hand, negative technical indicators and worrying market sentiments cloud these prospects.