Dogecoin Wallets Just Hit A New All-Time High, But Why Is Price Struggling?

Dogecoin has reached a new milestone with the number of wallets on the network hitting a new all-time high (ATH). Despite this bullish development, the DOGE price continues to struggle, which has raised concerns among community members. 

Dogecoin Wallets Hit New ATH But Price Continues To Struggle

In an X post, crypto analyst Ali Martinez revealed that the total number of Dogecoin wallets has hit a new all-time high of 83.48 million. This is bullish for DOGE as it indicates that more users are actively using the network, and the foremost meme coin. An increase in Dogecoin’s utility tends to lead to higher prices for the meme coin. 

However, in this case, the Dogecoin price is struggling despite the network’s addresses hitting a new ATH. DOGE is currently below the psychological $0.20 price level, having steadily declined from a local high of $0.46 achieved in December. As Bitcoinist recently reported, Dogecoin’s price decline is due to external factors rather than its fundamentals.  

The ongoing trade war between the US and other countries like Canada, Mexico, and China has sparked a bearish sentiment among investors and negatively impacted Dogecoin and other crypto assets. Moreover, the US has continued to create uncertainty in the market by going back and forth on what tariffs it is choosing to impose on these countries. 

Meanwhile, the US Federal Reserve maintains a hawkish stance, reducing the likelihood of the Fed cutting interest rates this year. This is also bearish for Dogecoin and continues to impact its price. Investors are unlikely to allocate much capital to the meme coin and other risk assets without assurances of a rate cut this year. 

DOGE At Risk Of Dropping To As Low As $0.15

In an X post, Ali Martinez warned that the Dogecoin price could drop to as low as $0.15 if it breaks below the $0.19 support level. He explained that since 2014, DOGE has been trading within an ascending channel and has tended to rebound from the channel’s lower support trendline to the upper resistance trendline. 

However, crypto analyst Trader Tardigrade suggested that the Dogecoin price could break out to the upside rather than suffering a break below $0.19. In an X post, he stated that DOGE’s Average Directional Index (ADX) indicates a potential surge ahead. His accompanying chart showed that the foremost meme coin could rally to $2.8 when this surge happens. 

Meanwhile, amid this market downtrend, crypto analyst Kevin Capital has indicated that now might be a good time to accumulate Dogecoin.  He pointed out DOGE’s weekly Relative Strength Index (RSI), which is currently oversold. As such, the meme coin could soon rebound from its current price level. 

At the time of writing, the DOGE price is trading at around $0.19, down over 8% in the last 24 hours, according to data from CoinMarketCap.