Dogecoin: Of peaks, falls, and persistent faith

Journalist

Posted: November 20, 2023

• DOGE has fallen by over 9% in the past two days.
• The meme coin’s volume has halved over the past few days.

Recently, Dogecoin [DOGE] moved separately from the prevailing market trend when it experienced a notable increase in its price. Is it maintaining this upward trend?

Dogecoin’s dodgy price trend

AMBCrypto’s analysis of Dogecoin’s daily timeframe chart revealed impressive trends towards the end of the previous week. The chart showed a substantial 19% increase in the asset’s value between the 15th to the 17th of November.

This consecutive uptrend initially suggested the emergence of a bullish trend. However, this optimism was short-lived, as of the 18th of November, DOGE experienced a loss of over 7%.

As of press time, there has been an additional decline of over 2%, resulting in a total loss of around 9% in the last 24 hours.

Source: TradingView

Furthermore, the downward trajectory influenced a decline in Dogecoin’s Relative Strength Index (RSI). The RSI was approaching the neutral line at press time, signaling a weakening bullish trend.

This also hinted at the potential development of a bearish trend if the price continued to fall.

DOGE faces a steep drop in volume

As Dogecoin’s price experienced a decline, there was a substantial decrease in trading volume as well, as observed in the volume chart analysis. According to AMBCrypto’s assessment of the Santiment volume chart, Dogecoin’s trading volume has halved.

On the 17th of November, the volume was around $2.06 billion, but at the time of this update, it dropped to around $1.06 billion. This significant reduction in volume indicated a reduction in the earlier heightened activity, influencing the overall price trend.

Source: Santiment

Furthermore, CoinMarketCap data revealed a notable volume decrease of over 30% in the last 24 hours. This decline in trading activity further contributed to the challenges faced by Dogecoin in maintaining its recent price performance.

Dogecoin’s traders keep faith

Another noteworthy metric that exhibited a decline was the Dogecoin funding rate. According to data derived by AMBCrypto via Coinglass, DOGE’s Funding Rate decreased following its price decline.

How much are 1,10,100 DOGEs worth today?

The chart also illustrated that the decline commenced after reaching 0.03% on the 16th of November.

Despite the downturn, the Funding Rate retained its positive value, signifying that traders still believed in the potential for a price increase. At the time of this update, the Weighted Funding Rate stood at approximately 0.008%.