Dogecoin
Is Dogecoin [DOGE] turning bullish? Key data suggests…
Dogecoin’s trading volume has dropped by over 30%, raising concerns about the sustainability of its bullish trend.
- Dogecoin’s RSI remained above its neutral line at press time.
- DOGE’s price increased by over 3% in the last 24 hours.
Dogecoin [DOGE] ended the previous trading session with a loss. Still, recent data indicated a trend reversal, signaling a potential market shift.
Despite this positive shift in prices, the trading volume has not yet increased to a level that would typically confirm this reversal as a strong and sustained movement.
Dogecoin recovers
On the 29th of July, Dogecoin experienced a decline of over 4%, coinciding with a 1% drop in Bitcoin [BTC]. Despite this, Dogecoin minimized its losses, closing the day at around $0.130, reflecting only a 1% decline.
According to AMBCrypto’s analysis, DOGE has since recovered from that dip, trading at around $0.134 at the time of writing, marking an increase of over 3%.
Source: TradingView
This recent price increase has contributed to maintaining Dogecoin’s bullish trend. The Relative Strength Index (RSI), at 60 at press time, is a significant indicator supporting this outlook.
An RSI level of 60 suggests the asset has a strong bullish momentum, but DOGE is not yet overbought. This might attract more buying interest if the upward trend continues.
Dogecoin’s volume trends negatively
According to the latest data from CoinMarketCap, Dogecoin’s trading volume was over $850 million, which is a respectable figure for the memecoin.
However, this represented a significant drop of more than 30% in the last 24 hours. This indicated a lack of convergence between price and volume trends.
For a bullish price trend to be considered strong and sustainable, it should be supported by increasing or consistently high trading volumes. The current scenario could suggest that market activities might not strongly support the price rise.
DOGE in profit increases
According to data from Santiment, the percentage of Dogecoin in profit dropped to about 73% on the 28th of July. This translated to approximately 106 billion DOGE being in profit at that time.
However, there has been a slight recovery since then. As of the latest data, the percentage of DOGE in profit has increased to over 74%, equating to more than 107 billion tokens.
Source: Santiment
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“In profit,” reflects the amount of circulating Dogecoin that was bought at a price lower than the current market price. If sold, these holdings would yield a profit.
The recent increase is influenced by the overall increase in Dogecoin’s price.
