Dogecoin (DOGE), the cryptocurrency known for its doge dog breed logo and meme origins, has seen a massive increase in trading volume.
Within 24 hours, Dogecoin trading volume surged by an impressive 146%, reaching $1.09 billion.
This spike is a clear sign that the Dogecoin trading volume is gaining traction among investors, inspired by its playful charm and strong community support.
Dogecoin trading volume | Santiment
According to U.Today, this surge involved around 8.61 billion DOGE transacted Whales and institutional investors.
Although the whole crypto market is experiencing a downturn, with Bitcoin's recent drop adding to the uncertainty, Dogecoin's activity remains robust.
Market Reactions and Analysis
While Dogecoin enjoys this increased trading activity, it is not immune to the broader market trends.
The recent decline in Bitcoin’s price, which fell to about $65,000, has had a ripple effect across the crypto market.
Dogecoin has been on a losing streak, with its price dropping over the past four days. However, there have been signs of a potential bounce back.
Crypto trader Kevin has pointed out a bullish signal in the Dogecoin/Bitcoin chart.
He noted a recent 3-day Moving Average Convergence/Divergence (MACD) indicator that previously led to a huge surge for DOGE against BTC within 60 days.
Kevin believes a similar Dogecoin bull run is nearing, especially with potential changes from the Federal Reserve and Bitcoin's dominance reaching a key level. However, he advises investors to stay patient and watch for these indicators.
"#Dogecoin vs #Bitcoin chart just saw a fresh 3-day MACD cross to the upside. The last time we saw this cross #DOGE pumped 100% against BTC showing a big outperformance in 60 days. With a potential Fed pivot coming and BTC dominance getting close to the macro target is #Altcoin," Kevin tweeted, highlighting the optimism around Dogecoin's potential rally.
Future Prospects
Technical analysis indicates that if Dogecoin can maintain its 50-day Simple Moving Average (SMA) as support, it could see a bounce back towards higher levels.
This could potentially push the price to the 200-day SMA at $0.134, and a sustained rally might even reach $0.14 or $0.18.
However, if the price falls below the $0.12 support level, it could lead to further declines, possibly dropping to $0.10.
Dogecoin price chart | CoinGecko
As of now, Dogecoin is trading at $0.1211, down by 3.5% in the last 24 hours and 5.42% over the past week.
Investors are closely watching for signs of a Dogecoin bull run, hoping the increased Dogecoin trading volume will lead to a recovery and further gains.
Despite the current market downturn, Dogecoin’s recent surge in trading volume shows the cryptocurrency’s resilience and the ongoing interest from both individual and institutional investors.
Investors and traders will be hoping that Doge will capitalize on this momentum and initiate a sustained bull run in the next few weeks.
With technical analysis as such dropped by Crypto trader Kevin, it is possible this would happen, but sometimes the market can say otherwise.