Dogecoin Price May Surge Amid Market Volatility, Caution Advised
The Future of DOGE: How the Market is Evolving
The cryptocurrency Dogecoin (DOGE) has come into the focus of the markets in recent days. Technical indicators allow conclusions about the possible performance of DOGE in the coming days.
DOGE could rise to $0.088 if buying pressure continues
According to a report from Whale Alert, Dogecoins worth $7.9 million were transferred from an unknown address to the investment platform and crypto exchange Robinhood. It is possible that the actor involved in the transaction plans to sell the coins. If this is the case, it could lead to a further price drop for Dogecoin.
At the time of reporting, the DOGE price was at $0.08, representing a 13.99% drop in the last 30 days. A few days ago it was reported that DOGE experienced a price increase due to speculation that the cryptocurrency could be involved in Elon Musk’s plans for XPayments. However, this increase to $0.09 did not last long.
Network activity is decreasing
On-chain data from Santiment shows that the number of active addresses within 24 hours rose to 149,170 on January 22. At the time of reporting, this metric has fallen to 123,000. Active addresses can be both a bullish and a bearish indicator. They show the number of different addresses moving around a cryptocurrency.
Social Dominance of Dogecoin is Increasing
While active addresses were decreasing, Dogecoin’s social dominance increased. Social dominance helps measure market sentiment by considering the rate of online discussions. The increase suggests that there are many conversations about DOGE. However, an increase in social dominance could be bad news for the DOGE price. Historically, such an increase leads to DOGE trending downwards.
Increasing Volatility Requires Vigilance
A look at the technical side of Dogecoin shows that the Bollinger Bands (BB) have expanded. This means that volatility is high and there could be significant price fluctuations. Despite the high social dominance, DOGE could continue to rise. The BBs indicate that the price could rise to $0.088 if buying pressure continues.
How much are 1,10,100 DOGE worth today?
For the moment, traders should be cautious when opening a long position. This is due to the Supertrend indicator, which is above the DOGE price. If the Supertrend falls below DOGE, this could be a buy signal that long traders could benefit from.
Sources: Santiment, TradingView, Whale Alert.