Dogecoin price analysis; Why has the price dropped recently?

The price of Dogecoin (DOGE) has fallen dramatically in recent months. Analyzing the reasons for this price drop, Ali Martins, an analyst in the field of digital currency, stated that there is a possibility that the hype surrounding this token will disappear in the future.

He stated that the volume of transactions and the number of whale transactions are decreasing. This issue indicates a possible decrease in the community's interest or trust in this memecoin. With fewer people involved in buying, selling, or transferring this token, its market dynamics seem to be changing.

The above observations are consistent with the current price stagnation of Dogecoin, which indicates negative sentiment and investor caution. Despite the recent return to the $0.082 level, DOGE price has once again fallen below $0.080.

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According to statistics from Into The Block, the transaction volume of Dogecoin whales in the last 24 hours was 630.13 million dollars, which is a 50% decrease compared to the volume of 1.38 dollars recorded on January 10. In addition, DOGE's daily trading volume has decreased to $286.87 million from $778 million last month.

At the time of writing, the price of Dogecoin has decreased by 3.26% in the last 24 hours to $0.0799. Following the price drop, Dogecoin's open interest index also decreased significantly and derivatives market traders withdrew their capital from the market.

According to Coinglass data, this index has decreased by 3.77% to $474.31 million at the time of writing. Additionally, about $1.09 million of positions were liquidated over the past 24 hours, almost all of which were long positions.

This suggests that long-term holders of DOGE are selling heavily to minimize their losses.