Dogecoin (DOGE) Has Maintained a Tight Trading Range

Dogecoin (DOGE) has maintained a tight trading range on Tuesday, as the cryptocurrency market's attention remains focused on the upcoming Federal Reserve meeting.

Dogecoin (CRYPTO: DOGE) prices remained largely stable on Tuesday, as the cryptocurrency market’s attention remained on the upcoming Federal Reserve meeting.

What Happened: On-chain data, however, showed a substantial decline in daily active addresses and transaction volumes, indicating a potential reduction in investor engagement.

Dogecoin is trading at $0.1745, at press time.

Dogecoin Price Stability: Dogecoin’s price has remained relatively stable in recent times, trading just above its yearly low.

The broader crypto market is eagerly awaiting the Federal Reserve’s interest rate decision, which could have significant implications for market sentiment.

Dogecoin On-Chain Activity Drops: According to data from Santiment, there has been a sharp decline in Dogecoin’s on-chain activity.

Daily active addresses engaging with the Dogecoin chain have dropped to 646, marking a 58% decrease from the previous week.

Transaction volumes on-chain also declined to 181,000, showing a 53% week-over-week reduction.

Positive Stock-to-Flow Ratio: In a positive sign, Dogecoin’s stock-to-flow ratio has surged to its highest level in 10 months.

The stock-to-flow ratio compares the relative scarcity of an asset to its rate of production. A higher stock-to-flow ratio generally indicates greater scarcity and potential for price appreciation.

What Is Stock-to-Flow? The "stock-to-flow" model, popularized by analyst PlanB, uses the ratio of the total amount of an asset in existence (stock) to the newly produced asset each year (flow) to predict the price of Bitcoin.

The model has gained attention for its ability to roughly track Bitcoin’s price over long periods. However, it's important to note that the model's accuracy in short-term price movements is limited.

Implications Of Declining Activity: The falling number of active addresses and transactions raises concerns about Dogecoin’s current market momentum.

Decreased activity could indicate that investors are largely in a holding pattern, awaiting external catalysts such as the Fed decision or macroeconomic events.

The upcoming Federal Reserve meeting will likely be a key factor in determining Dogecoin’s short-term price trends. Any unexpected changes in the Fed’s stance on interest rates or the outlook for the U.S. economy could significantly impact market sentiment and, in turn, affect Dogecoin’s price.

Dogecoin is a popular cryptocurrency known for its Shiba Inu dog meme. It was created in 2013 by software engineers Billy Markus and Jackson Palmer.

Dogecoin is used as a tip on social media platform X, formerly Twitter. It is also accepted by several merchants.

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