Amid the excitement in the meme coin market, Crypto Daily Trade Signals has observed a notable decrease in demand for Dogecoin (DOGE), accompanied by a slight price decline. This decline has resulted in the formation of a horizontal channel, a technical pattern where the price fluctuates within a limited range.

Crypto Daily Trade Signals highlights the impact of this decreased demand on Dogecoin, the leading meme coin. On Thursday, the analyst noted an 18% drop in DOGE demand over the past week, paired with a 1% decline in its price. This reduction has caused DOGE’s price to oscillate within a narrow range, forming a horizontal channel.

"The demand for DOGE has declined, causing its price to trade within a range. This drop in network activity has led to a tight price range, forming a horizontal channel."

Horizontal channels represent the price range between an upper resistance line and a lower support line, also known as sideways trends or price ranges, which are identified by connecting variable pivot highs and lows.

Other momentum indicators suggest that neither buyers nor sellers currently dominate the market, which could lead to DOGE’s price consolidating. Daily transaction data from IntoTheBlock shows an 18% drop in completed transactions over the past week. Similarly, new demand for DOGE has decreased, with a 21% reduction in new addresses created for trading the asset.

Despite the recent decline, analyst Ali Martinez has pointed out the potential for DOGE’s price to double. He identified significant resistance between $0.166 and $0.171, where over 75,000 addresses hold about 10 billion DOGE. Surpassing this level could push DOGE’s price to $0.322, the next major resistance point.

Currently, Dogecoin is trading at $0.1606, up 0.77% in the past 24 hours, with a 24-hour trading volume of $1.09 billion and a market value of $23.21 billion, showing a similar percentage increase .