[Digital Daily] Although the number of active Dogecoin (DOGE) addresses surged by 27% following the announcement of support from Paxos, the upward momentum in price remains limited due to bearish signals identified in technical indicators.

Active Addresses Increase by 27% Following Paxos Support Announcement... Price Rebound is 'Temporary'

Between May 31 and June 1 (local time), the partnership between Paxos and House of Doge was announced. According to Santiment data cited by the overseas cryptocurrency media outlet CoinGape, the 24-hour average number of active Dogecoin addresses during this period increased by approximately 27%, from 28,641 to 36,585. CoinGape analyzed this as the result of an influx of investor buying pressure following the news of Paxos' DOGE support.

In fact, the price of Dogecoin rose to $0.101 on June 1, but it fell back to $0.0978 within a few hours, failing to sustain its upward momentum.

Whale Investors Record Unrealized Losses... Spot ETF Sees 'No Capital Inflow'

The price drop is also dealing a blow to large-scale investors. According to CoinGape, a whale investor on Hyperliquid opened a $3.91 million long position in Dogecoin on June 1, expecting a price increase immediately following the Paxos support news. However, due to the price decline, the investor is currently recording an unrealized loss of around $128,000 based on CoinGlass data.

Institutional investors' reactions were also lukewarm. According to SoSoValue data, there was absolutely no capital inflow into the spot DOGE ETF on June 1. As a result, the DOGE ETF has continued its streak of zero net inflows and outflows for two consecutive weeks, demonstrating institutional apathy.

EMA Bearish Cross and RSI at 33... Sell-Off Dominated Market Continues

CoinGape pointed to extreme market fear and a bearish cross in the Exponential Moving Average (EMA) as the background for Dogecoin's limited upside potential. A bearish cross was formed as the 50-day EMA fell below the 20-day EMA, indicating that the short-term market trend has shifted in favor of sellers.

The Relative Strength Index (RSI) also recorded a reading of 33, indicating strong selling pressure. The RSI has been consistently forming lower highs and lower lows since May 5 of last year, showing that selling pressure has overwhelmed buying pressure over the past four weeks. During this period, the price of Dogecoin dropped from $0.118 to $0.098.

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