Do you hold some Dogecoins? Are you an advocate for this meme coin as the ‘future currency of the internet?’ Well, in that case, you should know that in the last 24 hours, the coin recorded a significant spike in its trading volume.
At a 200% spike in its trading volume in the last 24 hours, no corresponding increment was observed on a price front within the same period.
However, fear not. Let us have a look at the price charts and the chain to decipher what this means.
Who let the Doge(s) out?
With a 7% decline in price in the last 24 hours, the meme coin stood at $0.113 at the time of this writing.
Movements on the price charts pointed towards a significant bearish bias within the last 24 hours. Notably, the RSI and the MFI nosedived into critical oversold positions.
The RSI tested the 29-mark while the MFI registered a spot at the 13-mark. With this, the significant spike in the trading volume of the meme coin within the last 24 hours might be indicative of holders distributing to take profit or maybe to cut losses.
In addition, despite the increased trading volume, the market capitalization for the DOGE dipped by 6% within the last 24 hours.
The whales are distributing
On-chain data revealed increased whale activity for the meme coin within the last 24 hours. For transactions greater than 100k, the coin recorded a 46% spike in whale transactions.
Similarly, for transactions over $1 million, the coin recorded an 82% increment in whale transaction count. Increased whale activity without a corresponding uptrend in price only points at one thing; distribution.
Furthermore, in the last 24 hours, the index for the daily active addresses on the DOGE network recorded a spike from 121.24k to 127.83k. This also provided an explanation for the increased trading volume and the decline in price that followed. The active addresses might have been heavily distributing the meme coin.
On a developmental front, a significant uptrend was recorded in the last 24 hours. At the time of press, this stood at a high of 1.48.
After a short spike on 5 May, the social dominance for DOGE is also declining. But, investors haven’t lost interest completely. This may be attributed to the news of the WooCommerce plugin that now allows Word Press websites to accept Dogecoin payments, doing away with the need for any third-party payment processors.