Is Dogecoin about to collapse? DOGE price may plummet, two warning signs are alarming!
Last month, DOGE fell as low as $0.11, but the meme coin has been trading below that level since early September. These indicators suggest that existing trends in cryptocurrencies may influence price direction.
The first important metric is Dogecoin’s Mean Age of Investment (MDIA). This metric measures the average holding period of each dollar invested in a token. If MDIA rises, it means that investors tend to hold for the long term and are less likely to sell. However, if MDIA drops, it means more people are starting to trade their coins, which usually signals a massive sell-off.
Starting on September 8th, MDIA dropped significantly, indicating that fewer funds are being invested in Dogecoin. This could lead to Dogecoin’s price falling further below the current $0.10 level.
If the birth-death rate is high, it means cryptocurrencies are being adopted faster than users are exiting. But as of now, this ratio has dropped to 0.11%, indicating that more wallets have exited DOGE than new ones have been created.
