Dogecoin Plummets 22.6% Amid Low Engagement, Bearish Trends

Dogecoin, a popular memecoin, has experienced a significant decline in recent days, with its price falling by 22.6% in the last 24 hours. This drop has raised concerns among investors and analysts alike, as the cryptocurrency's value has been on a downward trajectory since reaching a high of $0.171 on Saturday. The decline in Dogecoin's price has been attributed to a combination of factors, including low social media engagement and falling on-chain activity.

Social media engagement for Dogecoin has been drying up, with the social dominance trend falling steadily since March. This trend has been accompanied by a decrease in daily active addresses, which saw a major uptick in November but has since fallen towards levels maintained since January. The social volume also set new lows in April, indicating that unless the price trend changes direction, attention and capital flows will continue to leak out of the market.

The bearish trend in Dogecoin's price has been further underlined by the funding rate, which crept into negative figures after a week of valiant efforts from the bulls. This has created favorable conditions for sellers, although it must be noted that the price has tended to bounce higher in the short-term whenever the funding rate has leaned negative.

The 1-day Dogecoin chart has shown steady selling pressure since December, with the On-Balance Volume (OBV) slowly but steadily falling lower. The Relative Strength Index (RSI) has been below neutral 50 since mid-January, indicative of a bearish trend in progress. The next price targets for Dogecoin are the $0.131 and $0.102 support levels from October 2024, with the former having been tested in recent hours and potentially yielding a bounce to $0.154-$0.164. Despite a potential 15% bounce, however, the trend will be firmly bearish in the near term.

The decline in Dogecoin's price has also been accompanied by a significant amount of liquidations across all exchanges. In the last 24 hours, there were $37.15 million worth of liquidations for Dogecoin alone, with $31.87 million or 85.78% of these being long positions. This has further exacerbated the bearish sentiment in the market, with investors being cautious about the cryptocurrency's future prospects.

The recent developments in the global markets, including the trade war, have also contributed to the decline in Dogecoin's price. The panic spread across global markets has led to a 10.68% drop in Bitcoin's value, further adding to the bearish sentiment in the cryptocurrency market. Investors need to be patient and cautious in the current market conditions, as more losses might be likely in the near term.