Dogecoin (DOGE) has garnered an audience consisting of both experienced and inexperienced investors despite being a memecoin with shaky fundamentals. But the coin’s charm may soon disappear owing to the recent crash.
Last week the year 2022 reached for its worst seven days for one of the most devastating weeks so far. DOGE, still unrecovered from its May meltdown, only kept on going downhill over the next 13 months, eventually ending up at £0.044 today.
With a decline of 32.03% in the last seven days, DOGE has dropped 92.19% from its all-time high of £0.62 in May 2021. While several tokens experienced such a drop, only a handful, including Terra, have crashed this bad.
This may give those investors who have weighed an exit the final jolt out of the space. Not only have new investors shown reluctance, but current DOGE holders choose to sell rather than buy, despite the fact that this could be a good time to “buy the dip.”
Across exchanges, sell orders outnumber buy orders by over 43%, or 40 million DOGE.
The strongest indicator of this pessimism, however, comes from DOGE whales, who account for 46.85% of the supply. Their attendance in the market waned a long time ago, in January, and has yet to rebound nearly six months later.
Currently, this group only performs transactions worth £164 million to £328 million on average, compared to more than £4.10 billion just before January.
However, the majority of these sellers are either short-term or mid-term traders, as their departure has allowed for long-term holders who have been faithful to the coin for more than a year to take their place.
With 28% of the supply, the long-term holders have increased since January, as they are the lone supporters of DOGE regardless of market conditions.
Recovering from the lows is a very risky road for the memecoin in the future. If it succeeds, it may be able to maintain its position among the top ten coins.