The Dogecoin price nosedived back on Tuesday and covered some gains made on Monday. According to Santiment on-chain metrics, the number of Dogecoin holders is well down, with a net loss of around 106,600 non-empty wallets since October 8th.
This trend has come as a reason for increasing frustration among traders over the performance of the leading meme coin. It also prompted many to look for quicker opportunities elsewhere. The sentiment seems to be changing in the wider crypto market. Participants are reassessing their portfolios in the face of volatile prices and reduced activity in DOGE.
Dogecoin Price Plummets as MVRV Metric Signals Overvaluation
According to data from Santiment, the number of active addresses first soared to a six-month high of 133,880 on October 10. At the time of writing, however, the Dogecoin price lost 2.5% to $0.1131, and the number of active addresses has fallen off a cliff. This indicates that the user activity is nosediving lower.
Dogecoin holders are rapidly falling in number. Since October 8th, there has been a net drop of -106.6K non-empty DOGE wallets. Traders have expressed frustration toward the largest meme coin’s performance, and have been increasingly looking elsewhere for quick pumps. pic.twitter.com/elpv0T71Ma
— Santiment (@santimentfeed) October 15, 2024
Still, market analysts have been diverting more attention to the $0.20 price level for DOGE lately. They consider that recent trends show favorable indications for an upward trend. Currently, DOGE trades at $0.113, while trading volumes have jumped by more than 100%. This may serve as fuel to push the Dogecoin price toward its immediate higher target. One of the reasons for the volume incline could be the fact that Grayscale recently hinted towards a potential listing for DOGE on its platform,
The MVRV metric signifies when a particular cryptocurrency, such as DOGE, is undervalued or overvalued. Currently, DOGE represents a 30-day MVRV of 4.93%, suggesting that the token is overbought.
This might be a sign that this positive value of MVRV could mean overvaluation of the cryptocurrency and lead to a potential sell-off. This ramps up selling pressure across crypto exchanges. Indeed, every time MVRV spikes historically, there is usually a correction afterward, meaning a trader should be cautious.
Potential for Moderate Growth in 2024, Significant Upside in 2025
Dogecoin price would see a somewhat fair appreciation this 2024, with predictions ranging between the higher $0.12 and the higher $0.25, considering the recovery of the overall crypto market. The positivity in sentiment, active community support, and revived interests may drive its price higher, but such growth may be dampened by prevailing market consolidation.
With a much better bull market and huge tech breakthroughs, DOGE’s valuation could increase meaningfully by 2025. Forecasts show it reaching $0.22 to $0.50. This would be thanks to increased adoption, momentum, and partnerships that drive up demand and price action accordingly.
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