DOGE Volume Surge of 90%: Is a Bullish Turn on the Horizon?

This article analyzes the recent 90% surge in trading volume for Dogecoin (DOGE) and its potential implications for market trends. Despite a downturn in price, certain technical indicators suggest a possible reversal.

Key Takeaways

Current Price: DOGE is trading at $0.1250 after reaching a low of $0.1228 and a high of $0.1278.
Volume Increase: Trading volume has risen by over 91.16%, totaling $879.71 million.
Technical Indicators: Mixed signals from MACD, BBP, and RSI suggest market indecision.
Support and Resistance Levels: Key support lies at $0.1239, while resistance is at $0.1280.

DOGE Volume Surge of 90%: Is a Bullish Turn on the Horizon?

DOGE Trading Analysis

In the early hours, Dogecoin (DOGE) was trading at a low of $0.1228. However, the price quickly climbed to $0.1278 amidst a brief bullish trend in the DOGE market. Currently, DOGE stands at $0.1250, with a remarkable trading volume surge of over 91.16%, amounting to $879.71 million. The market also experienced $2.63 million in liquidations in just 24 hours.

Looking at the seven-day price chart, Dogecoin has seen a decrease of over 6.60%. The week started with trading around a peak of $0.13, but the bearish trend has caused the price to drop to a low of $0.12 following various fluctuations.

Could DOGE Escape Its Downward Trend?

Technical analysis on DOGE reveals that the Moving Average Convergence Divergence (MACD) line is positioned above the signal line, although both remain below the zero line. This suggests an attempt at trend reversal within a broader downtrend. The Chaikin Money Flow (CMF) indicator, sitting at 0.00, indicates a balance of buying and selling pressures, which implies a possible consolidation phase without significant capital movements.

DOGE chart (Source:TradingView)

The Bull Bear Power (BBP) value for DOGE is 0.00167, reflecting almost neutral market pressure. This indicates indecision among traders, with prices likely remaining range-bound until more decisive momentum is established. Additionally, the daily Relative Strength Index (RSI) is at 49.50, which signifies neutral momentum in the market, indicating an equilibrium between buying and selling efforts with no clear price direction at present.

If DOGE cannot maintain above the $0.1261 mark, the price may retract to the essential support level at $0.1239. A drop below this range could trigger a deeper corrective movement, potentially leading to the creation of a death cross. Conversely, if there is a recovery, the price might attempt to rise toward $0.1269. Should a golden cross occur, DOGE bulls may push the price past the resistance level of $0.1280 for further gains.

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