Connect with us
Active Currencies 14429
Market Cap $2,635,471,169,670.30
Bitcoin Share 50.21%
24h Market Cap Change $-3.50

Dogecoin investors must consider these signs before making an exit

2min Read

Share this article

Dogecoin [DOGE], the world’s leading meme coin in terms of market capitalization, gained steady upward momentum in late June after marking its 2022 low of $0.050.

Now, after witnessing low volatility phase for a few weeks, DOGE’s price surged on 14 and 16 August. Thus, allowing it to outperform several other cryptocurrencies and reach $0.086. 

Within three days, DOGE grew by nearly 20%, giving hope for better days ahead.

However, soon after the increment, DOGE’s price plunged drastically. At the time of writing, DOGE traded at $0.06827 with a market cap of $9,058,654,268.

Whales at play 

While most of the crypto community was busy talking about the increment episode, whales accurately timed their exit, earning maximum profits.

Santiment’s data showed that the whales’ transaction count reached its highest during the peak of DOGE’s price, underlining the massive selling of DOGE at its peak.

Soon after the transaction count reached its peak, DOGE’s price declined severely.

Source: Santiment

The metric front

In addition to the price fall, DOGE’s social dominance also dropped. Thereby, indicating less interest from the crypto community in the meme coin.

Moreover, the price plunge was also accompanied by a massive decrease in DOGE’s active addresses as it fell from 180,000, which was the highest since April, to nearly 71,000 on 18 August.

Source: Messari

Interestingly, the fall also caused DOGE’s volatility to surge by more than 40% within a week as it rose from 0.56, its 6-month low, to 0.91.

Source: Messari

However, a look at DOGE’s four-hour chart suggests that the coin’s performance improved over the last few weeks as it hit higher lows consistently.

A bullish ascending triangle was formed that resulted in DOGE’s first price surge on 14 August, as it broke its resistance at the $0.072 mark.

Furthermore, the Exponential Moving Average (EMA) ribbons indicated that after a tussle between the bears and the bulls, the latter finally gained an upper hand in the market, leading to a price surge.

Source: TradingView

However, a divergence in DOGE’s price and Relative Strength Index (RSI) data was seen (purple trendlines) during the coin marking the twin peaks.

The Chaikin Money Flow (CMF) also displayed a similar divergence, indicating a possible plunge.

The indication turned out to be true, and DOGE’s price fell, registering a negative 14% 24-hour growth. 

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.