High Dogecoin Transaction Volume Persists Despite Price Drop

The market sentiment towards Dogecoin turned bearish, with a majority of indicators signaling a downturn for the meme coin.

High Dogecoin Transaction Volume Persists Despite Price Drop_65b9784ea5815.webp

Dogecoin (DOGE) surprised investors with a sudden 10% surge a few days ago, sparked by Elon Musk’s launch of the official Payments account for X on Twitter. However, this upward trend was short-lived, and the meme coin experienced a swift correction, erasing its weekly gains. Despite the bearish price action, a notable metric for Dogecoin has consistently remained robust for several months.

Dogecoin Erases Weekly Profit, Faces Price Setback

In the aftermath of the XPayments excitement, Dogecoin struggled to sustain its price uptrend, resulting in a significant drop. According to CoinMarketCap, DOGE recorded nearly a 4% decline in the last 24 hours alone, currently trading at $0.08031 with a market capitalization exceeding $11.4 billion.

Notably, amidst the bearish price movement, Dogecoin’s transaction volume has maintained a high level for an extended period. IntoTheBlock highlighted this resilience in a recent tweet, emphasizing that Dogecoin’s transaction activity continues to outpace several other top cryptocurrencies, including Shiba Inu (SHIB).

One could argue that the memecoin wars aren’t about utility. Nonetheless, Dogecoin’s dominance in the number of transactions is unmistakable. #Doge pic.twitter.com/kE4wW5IrmY

— IntoTheBlock (@intotheblock) January 22, 2024

Can Increased Network Activity Propel DOGE’s Recovery?

The question remains: Can network activity alone facilitate Dogecoin’s recovery? Despite the meme coin boasting a consistently high transaction count, it seems insufficient to offset its recent losses.

Related: XPayments Propels Dogecoin to Seven-Day Peak

While Dogecoin maintained elevated Social Volume last week, driven by heightened price volatility, the emergence of bearish sentiment became apparent through a decline in its Weighted Sentiment since January 22nd.

high dogecoin transaction volume persists despite price drop 65b9784ea88ea

Examining Dogecoin’s liquidation heat map reveals a crucial support level around $0.079, suggesting a potential price dip to that threshold before any upward movement. Failure to test this support zone may lead to further price decline.

high dogecoin transaction volume persists despite price drop 65b9784eaf52c

In an optimistic scenario of upward movement, Dogecoin could encounter formidable resistance around the $0.09 mark. However, our analysis indicates a likelihood of the meme coin’s price further decreasing. Both the Money Flow Index (MFI) and Relative Strength Index (RSI) have experienced downticks.

high dogecoin transaction volume persists despite price drop 65b9784eb7fb9

Despite these indicators, the Bollinger Bands suggest that Dogecoin’s price is currently in a less volatile zone, hinting at the possibility of reaching its support level and initiating a new rally from that zone.

(100 votes)

5.0/5

(100 votes)

Latest

Crypto Market Faces Volatility Ahead Of Trump Tariff Pause Expiration

News | Editor Choice | Policy & Regulations

Crypto Market Faces Volatility Ahead of Trump Tariff Pause Expiration

The crypto market is entering a sensitive phase as the Trump tariff pause nears its end and nearly $15 billion in Bitcoin options are set to expire, putting significant pressure on investor sentiment.

Pi Coin Faces Selling Pressure Ahead Of Pi2day

News | Editor Choice | Pi Network

Pi Coin Faces Selling Pressure Ahead of Pi2Day

Ahead of the Pi2Day event on June 28, Pi Coin is under strong selling pressure while Pi Network announces a series of new updates, including the KYC Sync feature and upgrades to the Pi Browser aimed at improving user experience and accelerating the transition to Mainnet.

Bitcoin Could Drop To $100,000 Soon

Bitcoin | Editor Choice

Bitcoin Could Drop to $100,000 Soon

Although Bitcoin has surged following the stabilization of the Middle East situation, it could still fall below the 100,000 USD mark in the near future.

Coinbase Stock Hits New High As Analysts Split On Future Rally

News | Altcoin | Editor Choice | Policy & Regulations

Coinbase Stock Hits New High as Analysts Split on Future Rally

Coinbase (COIN), the crypto exchange giant, has just set a new all-time closing high, despite growing concerns that the stock may be due for a short-term correction.

Ai Crypto App Users Double This Year

Editor Choice | Altcoin

AI Crypto App Users Double This Year

According to a report from DappRadar, there are approximately 4.5 million wallets using AI applications on the blockchain, marking an 86% increase this year.