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If the development activity remains flat, DOGE’s price might fail to increase.
The positive CLLD suggested that the price might fall to $0.12.
As an experienced analyst, I have observed that development activity plays a significant role in Dogecoin’s [DOGE] price dynamics. When development activity remains flat, as it has been since 24 April, the price may struggle to increase. This correlation is supported by historical data showing that development activity and DOGE’s price tend to move hand in hand.
It’s unexpected for most people that the development process would influence Dogecoin‘s [DOGE] price. Contrary to this belief, AMBCrypto discovered that such an impact indeed exists.
After closely analyzing the relevant data, we came to the understanding that this situation existed. As of now, there have been no significant developments on the network. This trend has persisted since April 24th. Notably, DOGE has been trading steadily between $0.13 and $0.16 throughout this timeframe.
Moving hand in hand, side by side
The rate of advancement in a project’s network by engineers is measured through development activities. In February, we observed a significant increase from a measure of 0.39 to 16.24.
During that period, DOGE‘s value dramatically increased from $0.08 to $0.14, mirroring the mentioned surge. A comparable occurrence took place between October and November 2023, as both price trends and developmental activity progressed in harmony on the graphs.
In other words, if the value of a metric increases, it’s reasonable to expect that Dogecoin’s price may follow suit. Additionally, a decrease in development activity could lead to a decline in Dogecoin’s price as well.
Doge’s February and March success may be challenging to replicate. However, it’s crucial to examine additional metrics for validation.
One metric AMBCrypto examined was the liquidation thresholds. These represent approximate prices at which forced selling, or liquidation events, could potentially transpire.
When a trader’s open position is forcibly terminated, it is referred to as a liquidation event. This usually transpires when the trader is unable to fulfill the necessary conditions to maintain the position any longer.
Will the price fall again?
At the current moment, there were very few potential selling points for DOGE between 15 and 16 cents. The scarcity of buyers and sellers in this price range might endanger DOGE’s value.
As an analyst, I would interpret this scenario by saying that Dogecoin’s price may not be drawn upward toward the resistance zone, making a lateral or sideways movement a plausible outcome for DOGE.
In the event of the worst possible outcome, the price could potentially fall to $0.12. Additionally, AMBCrypto analyzed Dogecoin’s Cumulative Liquidation Levels Delta (CLLD).
In simpler terms, higher positive values of CLLD (Common Language Liquidation Distance) imply a greater number of lengthy liquidation processes. Conversely, negative values indicate a larger proportion of short liquidation processes.
At the moment of publication, the CCLD signaled positively. In terms of pricing, this trend implies that Dogecoin could experience a complete reversal. Should this pattern hold, the forecast of $0.12 as a bearish price point may prove accurate.
As a data analyst, I’ve conducted an extensive evaluation of DOGE‘s current market situation, and I’d like to share some additional insights based on the analysis of active addresses. At present, there are approximately 54,600 unique DOGE wallet addresses that have been active within the last 24 hours.
Approximately three months ago, the number in question surpassed 250,000. This decrease serves as evidence of waning network activity. Additionally, there were approximately 325.94 million circulations in a single day.
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As an analyst, I’ve observed that the recent drop in DOGE‘s trading activity may hinder its exponential price increase on the charts. Nevertheless, should circumstances improve, DOGE could potentially advance toward $0.12.
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2024-05-18 04:07