Dogecoin Volume Explodes 190% But DOGE Price Remains Low, What’s Going On?
January 04 2024 - 4:00PM
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Dogecoin has had a hard time recovering from the flash crash that
rocked the crypto market on Wednesday. After losing its hold on
$0.09, the DOGE price has since been relegated back to the low
$0.08 level where it continues to trade at the time of writing.
Interestingly, this is happening at a time when the meme coin’s
volume is seeing a significant rise, so what’s going on? Dogecoin
Volume Rises Over 190% The Dogecoin daily trading volume has seen
one of the most significant spikes in the last day after its price
fell. As interest in the coin grew, so did the trading volume and
in the end, there has been a more than 190% increase in the daily
DOGE trading volume. Related Reading: Crypto Pundit Says Cardano
Rivals XRP Community, But Why Is ADA Price Struggling? According to
CoinMarketCap, this rise in the trading volume has brought the
figure to more than $1.12 billion in a single day. This works out
to around 9% of a trading volume to market cap ratio, something
that is very good for the asset. Source: CoinMarketCap However,
even with this rise in interest, DOGE is not enjoying any
recoveries. Instead, its price is still trailing $0.082 at the time
of this writing. It has also recorded a more than 10% decrease in
price in the same time frame, while also completely eliminating its
weekly gains. Why Is DOGE Price Struggling? It would seem the
reason that the DOGE price is not moving is more sell pressure
being mounted on the asset, especially by the large investors.
These whales who hold significant amounts of Dogecoin seem to be
selling off their holdings. An example of this is a transaction
that was reported by the on-chain whale tracker Whale Alert. The
transaction which was carrying 300 million DOGE worth a little over
$29.6 million at the time was being sent to the Binance exchange. 🚨
300,000,000 #DOGE (24,629,096 USD) transferred from unknown wallet
to #Binancehttps://t.co/M3WBb9bPOW — Whale Alert (@whale_alert)
January 4, 2024 Now, transactions like these can be bearish for a
crypto’s price because sending coins to exchanges can often mean
that the holder is deciding to sell their coins. Given this, it can
put a lot of sell pressure on the price, keeping it down like in
the case of Dogecoin. Related Reading: Crypto Analyst Blasts
$20,000 XRP Price Target, Reveals Why It’s Impossible There have
also been multiple large Dogecoin transactions that have been
headed for exchanges over the last day. An initial transaction of
82 million DOGE worth $6.74 million was flagged headed for the
Robinhood trading platform. An hour later, another large
transaction was flagged by Whale Alert, this time around, carrying
102.27 million DOGE worth $8.4 million to Robinhood as well. If all
of these transactions were made with the intention to sell, it
would explain why the DOGE price continues to struggle even amid
market recovery. However, not all transitions have been bearish,
especially from these large investors. One transaction reported by
the whale tracker saw over 151.68 million DOGE worth $12.49 million
moved from Robinhood to an unknown wallet. Such a transaction is
more bullish because it suggests the owner could be moving the
coins to a private wallet with the intention of holding them for
better prices. DOGE bulls fail to hold price | Source: DOGEUSD On
Tradingview.com Featured image from Inside Bitcoins, chart from
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