The popularity of Dogecoin is growing, transactions are decreasing – how is it reflected in the price of DOGE?

The coin remains strong as Dogecoin (DOGE) transaction numbers drop to the lowest level since 2017.

Support for Dogecoin comes from many companies, including Robinhood, which announced that it will start offering DOGE deposit and withdrawal support for its application next month.

Although he is no longer working on the project, Billy Markus, one of the Dogecoin developers, shared it via Twitter. he said:

“Okay, you can overreact. Robinhood’s support is great news for Dogecoin. It is giving many users access to cryptocurrency!”

On the other hand, on September 22, the real estate tokenization platform RedSwan announced that Dogecoin will be accepted in two digital real estate deals in its market. The firm offers partial ownership in two apartments for a total value of $ 384 million.

Ed Nwokedi, CEO of RedSwan CRE, said:[Dogecoin] “on the verge of becoming usable in legitimate and corporate transactions from a ‘meme’ currency”.

The two digital real estate deals, called APLO and LHOK, receive investments with approximately 4,447 DOGEs, equivalent to a minimum of $ 1,000. It promises an annual return of 26 and 19 percent to the investor, respectively.

Transaction volume drops

Despite the positive evolution, DOGE’s transaction levels fell to lows not seen since December 2017.

Dogecoin trading volume chart. Source: BitInfoCharts

According to data from BitInfoCharts, the number of daily DOGE transactions dropped to 16,000 for the first time in four years. It stands in stark contrast to the DOGE frenzy that swept through the cryptocurrency market in April this year, hitting 24-hour highs of 140,000.

The reduction in chain transactions was also reflected in DOGE’s price and market capitalization. The price is down 69 percent from its all-time high of $ 0.73 in mid-May to $ 0.22 at the time of writing.

DOGE / USD – Dogecoin Technical Analysis

In light of all these developments, Cointelegraph analyst Rakesh Upadhyay made an assessment on how the price of Dogecoin will progress in the short term.

DOGE broke below the $ 0.21 support on September 20 and achieved a close there. On the other hand, the bears failed to break the next support at $ 0.19. This indicates that demand is increasing at low levels.

DOGE / USDT daily chart. Source: TradingView

The bulls managed to keep the price above $ 0.21 on September 22. If this level holds, the DOGE / USDT pair could rise to the 20-day exponential moving average (EMA) ($ 0.24). The bears are likely to defend this level aggressively.

If the price breaks below the 20-day EMA, the bears will make another attempt to push the price below the $ 0.21 to $ 0.19 support zone. If they do, the pair could slide down to the critical support at $ 0.15.

On the other hand, the bulls have to push the price above the downtrend line and get closer there to show that the correction is over.

Opinions and comments expressed here are solely those of the author. It may not reflect the views of Cointelegraph. All investment and trading involves risk. You should do your own research when making a decision.

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