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Despite a certain transaction, DOGE’s price might fall in the short term
Decreasing velocity suggested that the coin might climb towards $0.25 in a few months
Based on information from Whale Alert’s blockchain monitor, a user moved 100 million Dogecoins (DOGE) from Robinhood to an undisclosed wallet. The value of these coins at the time of transfer was approximately $15.25 million, fueling rumors that the price might surge.
Robinhood is a trading service where people can convert their cryptocurrencies into regular money. Many users transfer their coins to sell, but sometimes they move them to personal wallets instead, suggesting a plan to keep the digital currency for an extended period. Consequently, the price of the specific cryptocurrency may rise or stay stable in response.
A little decline before the hike?
Dogecoin’s future outcome is uncertain according to AMBCrypto. It appears that the team might be getting ready for the price adjustments following Bitcoin‘s halving event.
In the past, memcoins such as Dogecoin have experienced significant price increases, reaching impressive heights, around the time of their halving events. Currently, DOGE is holding onto a value of $0.15, marking a 4.64% growth within the last day.
Although Santiment’s on-chain data indicated that the increase in Dogecoin might be temporary. This was suggested by the rising one-day circulation trend. At the moment, Dogecoin’s circulation had reached 1.07 billion coins. The surge in circulation implied more coins were being utilized, with fewer coins leaving the market.
If the metric keeps going up, Dogecoin’s value could potentially decrease. However, the coin’s velocity indicated something different, with a value of 1.49 in contrast.
Bitcoin pours more into DOGE
A fast-moving cryptocurrency signifies robust economic usage, with investors actively spending their coins. Conversely, a slowdown, such as DOGE‘s current state, may indicate hesitancy among holders to spend.
In the near future, an increase in DOGE‘s circulation could potentially cause its price to dip below $0.15. But if the speed at which DOGE is being used and traded (velocity) stays low over the next few months, there’s a chance that DOGE’s price will surge, and values between $0.20 and $0.25 could be reachable.
To determine if Dogecoin’s price may mirror Bitcoin’s trend in the coming weeks, AMBCrypto analyzed the correlation between the two digital currencies.
Based on Macroaxis’s statistics, Bitcoin and Ethereum have a 90-day correlation coefficient of 0.94. This figure can swing between -1 and 1. A nearly negative one implies no correlation at all, whereas a close-to-positive one indicates they move in similar ways strongly.
If you had invested an equal amount into DOGE instead of Bitcoin over the past three months, despite their correlation, your investment in DOGE would have been 1.66 times larger.
Realistic or not, here’s DOGE’s market cap in BTC terms
Moving forward, this situation might not alter. Therefore, if the price of Bitcoin decreases, Dogecoin may experience an even more dramatic drop. Conversely, a substantial rise in Bitcoin’s value could trigger an astonishing surge for DOGE, similar to the one observed in March.
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2024-04-19 17:11