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This is Why Dogecoin Price May Drop By 41%

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Dogecoin (DOGE) holders who have clung to their coins for a significant period might now be preparing to cash in. There has been a notable movement in DOGE coins held for extended periods, suggesting a shift in sentiment among these long-term investors.

In this analysis, BeInCrypto explores the potential outcomes arising from the movements of these previously dormant coins.

Dogecoin’s Age-Consumed Spikes To 16-Month High

On-chain data shows that Dogecoin’s Age Consumed, which tracks the movement of long-held coins, skyrocketed by over 3,000% on Thursday, reaching 1.02 trillion —its highest since June 2023.

Read more: Dogecoin (DOGE) Price Prediction 2024/2025/2030

Dogecoin Age Consumed
Dogecoin Age Consumed. Source: Santiment

When an asset’s age consumed spikes, it indicates that long-inactive coins or tokens have recently been moved or traded.

Typically, the reactivation of dormant coins signals renewed interest from long-term holders, which many consider a bullish indicator. However, for this bullish trend to play out, the influx of newly circulated coins must be met with sufficient demand to absorb the increased supply. 

Yet, an assessment of the DOGE/USD 12-hour chart reveals that no such demand is present in the market. As of this writing, its on-balance volume (OBV), which measures buying and selling volume in the market, is in a downtrend and is positioned at 507.90 billion. When an asset’s OBV is in a downtrend, it typically indicates that the selling pressure exceeds the buying pressure. 

Additionally, the meme coin’s negative Balance of Power (BoP) confirms that demand for DOGE is low. This indicator, which measures the strength of buyers versus sellers in the market, is at -0.34 at press time. A negative BoP suggests sellers are in control and attempting to push the asset’s price downward. 

Dogecoin OBV and BoP
Dogecoin OBV and BoP. Source: TradingView

DOGE Price Prediction: 41% Decline?

As of this writing, Dogecoin’s price sits at the support line formed at $0.13 and may fall below this level as selling pressure strengthens. A decline below this level will shift the meme coin’s focus to the next major support formed at $0.11. If this level fails to hold, Dogecoin’s price may drop to $0.08, representing a 41% decline from its current price.

Read more: How To Buy Dogecoin (DOGE) and Everything You Need To Know

dogecoin price prediction
Dogecoin Price Analysis. Source: TradingView

However, rising demand may absorb the new coins in circulation, holding the $0.13 support level. This could potentially set the stage for Dogecoin’s price to rally toward $0.15.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Will XRP Crash Below $2 in March? Latest Insights

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XRP is correcting by almost 30% in the last 30 days, with its price trading below $3 for nearly a month. The Directional Movement Index (DMI) shows a strong downtrend, with the Average Directional Index (ADX) surging above 35, indicating increased bearish momentum.

However, a potential reversal could occur if the SEC drops its lawsuit against XRP, possibly triggering a rally toward key resistance levels.

XRP DMI Shows the Lack of a Clear Direction

XRP’s Directional Movement Index (DMI) reveals that its Average Directional Index (ADX) is currently at 36.98, a significant increase from 15.89 just four days ago.

The ADX is a trend strength indicator that does not indicate the direction of the trend but measures its intensity. Typically, an ADX value above 25 signals a strong trend, while a value below 20 suggests a weak or non-trending market.

With XRP’s ADX rising sharply above 35, it indicates that the current downtrend is gaining momentum.

This surge in ADX suggests that market participants are showing stronger conviction, making the existing trend more likely to continue.

XRP DMI.
XRP DMI. Source: TradingView.

Meanwhile, XRP’s +DI (Positive Directional Indicator) is at 11.4, down from a high of 15.1 two days ago, indicating weakening bullish pressure. In contrast, the -DI (Negative Directional Indicator) has declined to 21.6 from 37.2 on February 2, showing a decrease in bearish momentum.

Despite the reduction in bearish pressure, the -DI remains above the +DI, confirming that the downtrend is still intact. The widening gap between the ADX and the directional indicators suggests that the downward trend is strong and persistent.

Until the +DI crosses above the -DI, signaling a potential trend reversal, XRP is likely to remain in a bearish phase.

XRP Active Addresses Are Recovering After Reaching Its Lowest Level In 3 Months

The number of 7-day XRP Active Addresses dropped from 407,000 on January 20 to about 186,000 on February 19, the lowest level since November 2024.

This metric is important because it measures user engagement and network activity, reflecting demand for XRP. A decline suggests reduced interest and bearish sentiment, while an increase indicates growing participation and potential buying pressure. The sharp drop signaled waning investor interest, contributing to XRP’s bearish outlook.

7-Day XRP Active Addresses.
7-Day XRP Active Addresses. Source: Santiment.

Recently, XRP Active Addresses started to recover, reaching 236,000 – up 26.8% in the last week. This increase suggests growing user activity and renewed interest in the network.

Historically, rising active addresses can precede price recoveries as participation leads to higher demand. If this trend continues, it could support a potential price rebound, but sustained growth is needed to confirm a bullish shift.

XRP’s Uptrend Largely Depends on the SEC and Ripple Lawsuit

XRP’s EMA lines currently show a bearish setup, with short-term lines below long-term ones. The price has been trading below $3 since February 1.

This alignment suggests continued downward momentum, as shorter EMAs reflect recent bearish sentiment. If the downtrend persists, XRP could test two strong support levels at $2.15 and $2.06.

If these are lost, XRP price could fall to $1.77, dropping below $2 for the first time since November 2024.

XRP Price Analysis.
XRP Price Analysis. Source: TradingView.

However, a trend reversal is possible, especially if the SEC drops its lawsuit against XRP in March. Recently, the SEC dropped cases against Gemini, Uniswap, Robinhood, and Coinbase, signaling a shift in regulatory pressure.

If the lawsuit is dropped, it could trigger an uptrend, with XRP testing resistances at $2.36 and $2.52. If these levels are broken, XRP could continue rising towards $2.71, potentially reversing the bearish outlook.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Texas Bitcoin Reserve Bill Passes Committee 9-0

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Texas’ Bitcoin Reserve proposal was unanimously passed by the Business and Commerce Committee and will proceed to a Senate vote.

However, several similar bills were handily defeated in other Republican-controlled states. Even Texas’ GOP is not unified behind the effort, and it might not succeed in the Senate.

Can Texas Pass a Bitcoin Reserve?

Several US states are trying to pass their own Bitcoin Reserves, which would make them major BTC holders. When these bills first started being introduced, the crypto community was ecstatic because they would guarantee up to $23 billion in new acquisitions.

Today, one more Bitcoin Reserve effort moved forward, thanks to a Committee in Texas:

“The committee sub for SB 21 [the Bitcoin Reserve bill] just passed the Business and Commerce Committee by a 9-0 vote. Strategic Bitcoin Reserve heading to the Senate floor,” claimed Brad Johnson, a local reporter.

When a proposal passes a committee vote, it means that a small group of legislators specializing in the subject matter—here, the Business and Commerce Committee—has reviewed it and agreed that it merits further consideration.

Once the proposal passes the committee stage, it moves to the full Senate. This is when all senators debate and vote on it. If a majority of senators support the proposal, it can proceed toward becoming law.

This news from Texas is a particular relief because it’s a fresh win for all Bitcoin Reserve legislation efforts. At the beginning of the month, they had strong momentum, with Utah making major progress.

However, Montana rejected its own Reserve bill, and this was followed by several other red states. In other words, it’s the first major crack in crypto’s new political coalition.

Texas in the Bitcoin Reserve Race
Texas in the Bitcoin Reserve Race. Source: Bitcoin Laws

Texas’ new Lieutenant Governor strongly supports the Bitcoin Reserve bill, which has surely helped its chances. Wyoming’s legislative effort didn’t make it through the Committee despite one of the state’s Senators heavily supporting it.

One key factor that may help this legislation is that Texas is one of the US’ largest Bitcoin mining hubs. Currently, the bill does not explicitly mandate that Texas buy these assets from local businesses, but it easily could.

Presently, though, the recent proposal defeats in various red states are stinging. It’s still very unclear what the bill’s chances are.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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MEME Act Could Ban TRUMP And Political Token Launches

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Sam Liccardo, a Silicon Valley congressman, proposed the MEME Act to stop TRUMP and other political tokens. The bill has practically no chance of passing, but it might be an important milestone.

Although the crypto industry is theoretically enjoying real political power, there are some cracks in the Republican coalition. If these cracks widen, a vital legislation like this could have a chance at success.

Can the MEME Act Stop TRUMP?

When President Trump launched his own meme coin, it crossed worrying new boundaries for the crypto space. Nearly half of its investors were complete novices to the crypto space, and scammers exploited the hype to steal $857 million in the first few days.

Now, freshman Congressman Sam Liccardo is trying to stop the trend by sponsoring his first piece of legislation:

“That wasn’t my plan when I ran for office, I can assure you. [Trump’s] behavior is so self-evidently unethical that it raises the question why isn’t there a clear enough prohibition [on political meme coins]. You need to have some enforcement mechanism and a private right of action helps to keep everybody honest,” Liccardo claimed in an interview.

Liccardo is the Representative for Silicon Valley, the US’ biggest tech hub, and he’s been in office since January. So far, it is unclear how many of the Valley’s tech firms support his first big Congressional effort.

Today, he proposed the Modern Emoluments and Malfeasance Enforcement (MEME) Act, which targets TRUMP and other political meme coins.

This act would block the President, members of Congress, other senior officials, and their family members from launching or endorsing any tokens under threat of civil and criminal penalties. It would also impose similar restrictions on commodities and securities.

If approved, the MEME Act would also demand that Trump disgorge all profits from his token launch.

trump meme act
Congressman Liccardo Proposing the MEME Act Referencing TRUMP. Source: X/Rep. Sam Liccardo

The rise of TRUMP and other political meme coins is causing prominent figures like Vitalik Buterin to worry about the industry’s direction. Blatant scams are impacting crypto’s credibility, and multiple foreign governments have launched or considered launching their own meme coins and rug pulls.

Several crypto community members believe these tokens are a stupendous mechanism for enabling political corruption.

Liccardo was very open about his intent to use this bill as an act of protest. He got 12 other Democrats to co-sponsor the bill, but it doesn’t have bipartisan support.

The Republican Party has shown clear signs that it’s very pro-crypto as advertised, but it’s important not to overstate the fact. Yet, even the GOP’s crypto skeptics would have no reason to oppose their President publicly.

In short, the MEME Act may not end up doing anything to stop TRUMP or the political meme coin craze. Still, Liccardo’s effort may be an important building block. It may help build future legislation or gauge the feasibility of GOP crypto skepticism.

Ostensibly, the industry has more political power than ever, but this power hasn’t faced a real test.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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