Dogecoin (DOGE) Skyrockets 87% in Trading Volume

Dogecoin Trading Volume Surges Despite Price Dip

Dogecoin, the renowned dog-themed meme coin, has experienced a significant spike in trading volume. According to CoinGlass data, DOGE has surged by 87%.

Despite this volume increase, the DOGE price has fallen by 5.20% in the past 24 hours. Last week, Dogecoin lost a decimal point, dropping by over 7% amidst negative investor sentiment and a stock market correction. Source: CoinMarketCap

Elon Musk's Influence

Earlier this week, Tesla CEO Elon Musk sparked interest within the cryptocurrency community by commenting on X. In response to a tweet about Starlink bank accounts being frozen, "Sir Doge of the Coin," a prominent Dogecoin supporter, suggested, "Dogecoin fixes this." This interaction attracted attention from the Dogecoin community.

In January 2021, Musk's remarks led to a 339% surge in Dogecoin's value, bringing it to $0.032642. Its peak price of $0.682 was reached on May 8, 2021. However, despite celebrity endorsements, Dogecoin's business adoption remains limited.

Despite Musk's support, Dogecoin has not achieved a major breakthrough. Its price has dropped over 7% amidst the crypto correction.

Bearish Sentiment

Losing a decimal point has significantly impacted DOGE investors. As the market moves into the "extreme fear" zone, bullish investors must patiently await the ideal moment to enter the market.

Dogecoin has faced a consistent decline for several months, encountering resistance at key levels set by its moving averages. The 200-day EMA remains well above the current price, indicating a sustained downward trend.