Difficult Times For Dogecoin: Losing Investors In 2022
Meme tokens have come a long way in the cryptocurrency market. One of the leading meme coins or tokens is Dogecoin. Although another meme token Shiba Inu has become more famous than Dogecoin yet DOGE is on the higher side in the market. Meme token does not have its own blockchains but run on other blockchains like Ethereum.
The adaptation of the meme coin Dogecoin, originally intended as a Bitcoin parody, is progressing. Who would have ever thought that celebrities and fashion brands would champion Dogecoin? Rapper Ice Cube and popular fashion brand Gucci are now supporting the meme coin and are ready to receive DOGE payments for their products.
Gucci accepts Bitcoin and Dogecoin
Gucci is now getting even deeper into the world of cryptocurrencies. According to the news magazine Voguebusiness, shops in New York, Los Angeles, Miami, Atlanta and Las Vegas will accept several cryptocurrencies by the end of the month. These are Bitcoin, Bitcoin Cash, Ethereum, Wrapped Bitcoin, Litecoin, Shiba Inu, $5 stablecoins and of course the meme coin Dogecoin. Customers can then use a QR code to pay directly with the cryptocurrency of their choice and even use their own wallet.
Gucci also relies on the Metaverse and NFTs. The company has a dedicated team focused on Web 3 initiatives and has had 19 million visitors to the Gucci Garden, a Roblox game. In January of this year, the fashion house also launched its own NFT collection.
Dogecoin is one of the most popular and successful meme coins. But like every other cryptocurrency on the market, DOGE is facing losses. This has caused trust in the meme coin to drop significantly. The result: many investors exit the asset. It appears that the worst is not over for Dogecoin as tens of thousands of investors are now pulling out. That could bode sinister – especially in the short term.
40,000 Holders Exit Dogecoin
Dogecoin has lost value over the past year, which of course has had an impact on investors as well, with investors leaving the meme token in droves. The most recent batch of exodus consisted of 40,000 DOGE holders – they have now exited the cryptocurrency.
This happened over a period of ten days. Earlier it was revealed that Dogecoin had lost over 700,000 investors. This is a direct result of an ever-falling price with no end or respite in sight.
After hitting its all-time high of $0.7 last year on the hype surrounding Tesla CEO Elon Musk, the meme token has struggled to hold onto its gains. This has caused the price to lose more than 70% of its all-time high in a year and continues to fall.
Active investors or should we call them Dogecoin holders have risen to almost 4 million. But once prices dropped to the $0.1 mark, investors were forced to abandon ship or risk losing even more.
More investors are predicted to exit the meme token in the coming weeks. Because: Indicators show that DOGE could continue to trend downwards in both the short and long term. Therefore, investors will exit in search of more profitable tokens.
Also Read About: What is HOKK Finance?
Dogecoin price skyrocketed amid news that Elon Musk would be allowed to buy social media giant Twitter. This recovery was largely due to Musk being an avid supporter of Dogecoin and investors in the space believe the billionaire will continue to push the Dogecoin agenda on Twitter.
However, as time has passed and the hype surrounding Musk’s Twitter offering has died down, Dogecoin has returned to its usual trend of lower tops and bottoms. It peaked at $0.17 after the Twitter update but has since fallen back to $0.13.
Meme token is currently trading at $0.133, continuing below the 100-day moving average. Indicators for DOGE are pointing to strong selling pressure among investors, which in turn will trigger a further downside.
The next resistance is at $0.136, while the best support is found at $0.124. If Dogecoin closes below $0.14 at the close, it will likely test this first mid-week support.