Amid the equity and crypto markets suffering from the impact of China’s Evergrande debt bomb, DOGE fell -5% on a daily basis, -10% on a weekly basis, and -30% on a two-week and 30-day basis. It is worth noting that DOGE price is positioned within the newly formed descending channel.

Source: TradingView

Can DOGE get up early?

At the time of writing, nearly 60% of the addresses holding DOGE are losing money, according to IntoTheBlocks Global In / Out of the Money indicator. Usually, increased ROI attracts new investors to the market. However, this is currently not the case with DOGE.

Messari data shows a rather interesting trend in the NVT (Network Value to Transaction) ratio, which measures the relationship between market capitalization and transfer volume. If the NVT is high, it indicates that the network value is greater than the value transmitted on the network.

Source: Messari

Usually such a trend has a positive effect on the long-term valuation of an altcoin. The same has been observed with Ethereum. However, this did not happen with DOGE. The meme coin price is pumped whenever NVT is low. On August 15, when the price hit a local high of $ 0.30, NVT corrected to a low of 33.96. Additionally, NVT slipped to 16.47 during the Saturday Night Live (SNL) drama that drove the price higher on ATH.

As can be seen from the attached graphic, the current status is [333] is extremely high and traditionally the momentum of DOGE cannot be sustained.

In addition, when the coin price rose slightly in August, development activities began to see signs of a resurgence. In fact, the index rose from 8 to 13 in 10 days, but has been fairly stagnant since then.

However, it should be noted that the number of active developers is also decreasing for the time being. At the time of writing, there is only one active developer, and recent GitHub repository commits are pretty bad too.

Source: Santiment

The collective sentiment at the time of writing has also declined. Hence, there is no reason to expect the price of DOGE to rise in the coming days. If the Meme-Coin manages to keep the current level, this could be seen as an asset for DOGE itself and its loyal community. In short, the benchmark of $ 0.50 is equal to $ 1, which at this point still seems a long way off.

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Annie

According to Ambcrypto

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