Dogecoin (DOGE) is currently witnessing a mixed market sentiment as its daily trading volume has surged by 76%, reaching $1.01 billion. This remarkable increase in volume stands out amidst a broader trend where most altcoins in the top 10 are experiencing a downward trajectory.
Despite this volume spike, the price of DOGE has not seen a corresponding rise. Over the past 24 hours, the price has decreased by 0.5%, trading at $0.1254. The altcoin market seems to reflect a similar pattern, indicating that the uptick in Dogecoin”s trading volume may not be driven by aggressive buying activity. However, this development does shine a spotlight on engagement within the meme coin ecosystem.
Compounding the situation, a death cross is evident on the hourly chart for Dogecoin. This technical indicator occurs when a short-term moving average crosses below a longer-term average, signaling substantial selling pressure in the market. While this death cross is not a new phenomenon for DOGE and similar altcoins, it provides a clear perspective on the current market conditions.
On a more optimistic note, the accompanying Relative Strength Index (RSI) for DOGE is reading at 35, indicating oversold conditions. This suggests that despite recent consolidation, there is potential for a price breakout in the future. As the year approaches its end, Dogecoin has recorded a year-to-date (YTD) decline of 61%. This downturn has occurred even with the recent launch of the spot Dogecoin ETF in the United States and its adoption by corporate firms.
Although Wall Street”s interest has not significantly impacted Dogecoin”s performance in the last few months, there is potential for this to change in the upcoming year. As an altcoin that is largely correlated with Bitcoin, the factors influencing DOGE”s recovery are multifaceted. Market participants should closely monitor the activities of Dogecoin whales, treasury firms, and the potential resurgence of Bitcoin, as these elements could play a crucial role in driving DOGE back into a bullish cycle.
