Social Volume Surges as Dogecoin Plummets by More Than 7%

Dogecoin

Over the past year, the cryptocurrency industry has seen a series of legal actions, including a lawsuit of $258 billion filed against Elon Musk for allegedly operating a pyramid scheme to promote Dogecoin. Though the charges were initially presented in June 2022, they resurfaced recently when Musk’s legal team moved to dismiss the lawsuit. With the verdict still pending, the value of the popular meme coin has experienced a significant decline.

While the entire cryptocurrency market was undergoing a minor correction, Dogecoin was impacted more heavily than other assets. At the time of writing, the digital asset was trading at $0.0783, down 7% in value over the last 24 hours.

Read Also: Could Dogecoin Reach $0.73 Again by 2030?

The chart above reveals that the meme coin displayed several bearish signals. The Parabolic SAR indicator, represented by dotted lines above the candlesticks, indicated resistance to any potential uptrend. However, DOGE managed to avoid a significant downfall thanks to its strong support line at $0.0726 and $0.0702.

Furthermore, the Relative Strength Index (RSI) indicator showed that DOGE retreated from the overbought zone on April 2. Presently, the asset is hovering around the 50 medians, indicating no significant buying or selling activity.

Dogecoin: The Most Popular Meme Coin

Lunar Crush’s analysis reveals that Dogecoin is currently the most popular meme coin in social volume over the previous week, possibly due to the recent lawsuit and the resulting drop in value. 

Shiba Inu (SHIB) and Baby Doge came in second and third place, respectively. However, despite the recent decline in its value, a growing number of long-term holders have been increasing their holdings of Dogecoin. 

Read Also: 6.08 Trillion SHIB Transfers to Coinbase Leave Questions Unanswered. What Does This Mean?

IntoTheBlock’s data indicates that addresses holding DOGE for over a year now comprise a substantial 44.8 billion DOGE, worth over $3.76 billion. This marks the highest quantity of DOGE owned by long-term holders since October 2021.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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