Journalist
Posted:
- DOGE has fallen by more than 9% in the past two days.
- The volume of the meme coin has halved in recent days.
Recently, Dogecoin [DOGE] moved away from the prevailing market trend when it experienced a notable price increase. Will it maintain this upward trend?
The unreliable price development of Dogecoin
AMBCrypto’s analysis of Dogecoin’s daily timeframe revealed impressive trends towards the end of the previous week. The chart showed a significant 19% increase in the asset’s value between November 15 and 17.
This consecutive uptrend initially suggested the emergence of a bullish trend. However, this optimism was short-lived: as of November 18, DOGE suffered a loss of more than 7%.
At the time of writing, there has been an additional decline of over 2%, resulting in a total loss of approximately 9% in the last 24 hours.
Source: TradingView
Furthermore, the downward trajectory affected a decline in Dogecoin’s Relative Strength Index (RSI). The RSI was approaching the neutral line at the time of writing, indicating a weakening bullish trend.
This also indicated the possible development of a bearish trend if the price continued to decline.
DOGE is facing a steep volume decline
If Dogecoins price fell, there was also a substantial drop in trading volume, as observed in the volume chart analysis. According to AMBCrypto’s assessment of the Santiment volume chart, Dogecoin trading volume has been halved.
On November 17, the volume was approximately $2.06 billion, but at the time of this update it had dropped to approximately $1.06 billion. This significant drop in volume indicated a reduction in the previously elevated activity, which affected the overall price development.
Source: Santiment
Further, CoinMarketCap data showed a notable drop in volume of over 30% in the last 24 hours. This decline in trading activity has further contributed to the challenges Dogecoin faces in maintaining its recent price performance.
Dogecoin traders remain confident
Another notable metric that showed a decline was the Dogecoin funding rate. According to data derived by AMBCrypto via Mint glassDOGE’s financing rate fell after the price drop.
How many Worth 1,10,100 DOGEs today?
TThe chart also illustrated that the decline started after reaching 0.03% on November 16.
Despite the downturn, the financing rate maintained its positive value, indicating that traders still believed in the potential for a price increase. At the time of this update, the weighted funding rate was approximately 0.008%.