- Dogecoin [DOGE] witnessed a notable price increase of over 3% in the last 24 hours, following a previous session that closed with a marginal loss.
- Despite the price resurgence, trading volumes have not increased significantly, raising questions about the sustainability of this upward trend.
- One key indicator of Dogecoin’s bullish momentum is the Relative Strength Index (RSI), which currently sits at a favorable 60-level.
Dogecoin shows signs of a bullish trend with a recent price rise, but trading volumes suggest caution. Explore the latest market analysis.
Dogecoin’s Recent Price Movement
Dogecoin experienced a 4% dip on the 29th of July, coinciding with a decline in Bitcoin. However, it managed to close at a minimal 1% loss, priced at approximately $0.130. Since then, DOGE has recovered and is currently trading around $0.134, demonstrating over a 3% increase.
Factors Influencing Dogecoin’s Market
The Relative Strength Index (RSI) for Dogecoin remains above neutral at 60, indicating strong bullish momentum. An RSI level of 60 typically attracts more buying interest, as it shows the asset is gaining traction but is not yet overbought. This technical analysis aligns with Dogecoin’s recent price movements, affirming its positive momentum in the near term.
Trading Volumes Lagging Behind
Despite the encouraging price trends, Dogecoin’s trading volume tells a different story. According to CoinMarketCap, the trading volume has dropped over 30% in the last 24 hours, currently standing at over $850 million. This discrepancy between price and volume is crucial, as strong price movements are usually supported by high or increasing trading volumes. The current low volume raises concerns about the strength and sustainability of Dogecoin’s price rise.
Analyzing Dogecoin’s Profitability
Santiment data reveals an increase in the percentage of Dogecoin in profit, climbing from 73% on the 28th of July to over 74% recently. This uptrend translates into more than 107 billion DOGE being in profit, primarily driven by the recent price increases. ‘In profit’ implies these tokens were bought at a lower price than the current market rate, presenting a profitable selling opportunity.
Conclusion
While Dogecoin has shown a promising price recovery and bullish momentum as indicated by the RSI, the significant drop in trading volumes is a factor that cannot be overlooked. It suggests that the current upward trend might lack the robustness needed for a sustained rally. Investors should keep a close watch on these metrics to make informed decisions. The near-term outlook appears cautiously optimistic, pending a rise in trading activity to support the price gains.
