Will Dogecoin Transaction Volume Rebound After $415 Million Fall?
Dogecoin (DOGE) trading volume has fallen to its lowest level since November, indicating a significant decline in market participation on both spot and derivatives exchanges.
The decline coincides with DOGE’s failure to break above $0.48 since December 8. If this trend continues, the Meme token’s 300% year-to-date (YTD) gain could face further downward pressure.
Dogecoin trading interest plummets
In October, the price of Dogecoin was $0.10. By the first week of December, soar to $0.48, with some analysts saying the cryptocurrency could be worth even higher. The price surge may be related to The election of donald trump As President of the United States and the return of retail investors.
A few weeks after Trump was elected, Dogecoin trading volume climbs Reaching $5.69 billion, reflecting strong interest in cryptocurrency trading. However, as of this writing, Santiment data shows trading volume has dropped to $415.31 million.
This value is the lowest reached since November 4. Rising volume is usually a bullish sign. Therefore, the recent decline, if sustained, would suggest DOGE may face another price cut In the short term.
Another indicator pointing to further declines in DOGE is Weighted Sentiment. Weighted sentiment uses comments on social media platforms to gauge broader market sentiment toward cryptocurrencies.
Positive readings for this indicator reflect Mainly bullish Market sentiment, while negative readings indicate general pessimism, which is usually bearish. Currently, the indicator stands at -0.57, indicating an increase in bearish comments.
If this sentiment persists, Dogecoin may struggle to attract higher demand. Therefore, the price may face downward pressure and could fall below the $0.48 mark.
DOGE Price Prediction: Lower Lows Next
On the 4-hour chart, DOGE continues to trade below Descending triangle. A descending triangle is a bearish chart pattern characterized by a downward-sloping upper trendline and a flatter, horizontal lower trendline. time
This pattern usually means that prices continue to move lower as sellers continue to push prices lower while buyers struggle to maintain support at the horizontal trendline.
With the price of DOGE trading below the lower support line, this suggests that bulls may not be able to push the meme token higher in the short term. Instead, the cryptocurrency’s value could fall below $0.36.
However, if the surrounding emotions Coin turns bullish And with increased volume, that may not be the case. In this case, DOGE could rise to $0.45.
Disclaimer
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