Dogecoin Transaction Volume Sinks to $415 Million, Threatening 300% Yearly Increase

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As a researcher with years of experience in the cryptocurrency market, I have witnessed numerous ups and downs, bubbles, and crashes. The current decline in Dogecoin (DOGE) transaction volume is a stark reminder of the volatile nature of this space.

Dogecoin’s (DOGE) trading activity has hit a record low since November, suggesting a substantial decrease in market engagement across both standard and derivatives trading platforms.

This drop in value aligns with Dogecoin’s inability to surpass $0.48 since December 8. If this pattern continues, the meme currency could experience additional downward force, potentially eroding its 300% year-to-date (YTD) gains.

Interest in Trading Dogecoin Plunges

In October, Dogecoin was trading at $0.10. By the beginning of December, its price skyrocketed to $0.48. Multiple analysts believe that its worth might even increase further. Some experts attribute this price hike to Donald Trump’s election as the U.S. President and a resurgence of individual investors.

Following Donald Trump’s election, I noticed a significant surge in transactions for Dogecoin, peaking at an impressive $5.69 billion. This spike indicated a growing interest in trading this cryptocurrency. However, as I write this, Santiment data reveals that transaction volume has dipped to $415.31 million.

As an analyst, I’ve observed that the current value is at its lowest point since November 4. Increased trading volume often indicates optimism among investors, which is generally a positive sign, or bullish. However, if this decline persists, it could be indicative of potential further price decreases for Dogecoin (DOGE) in the near future.

Another metric suggesting a further decline in DOGE is the Weighted Sentiment. The Weighted Sentiment gauges the broader market’s perception of a cryptocurrency using comments made on social media platforms.

In simpler terms, when the value of this metric is high (for example, +0.57), it suggests that there are many positive or optimistic views about the market. Conversely, a low value (such as -0.57) implies an abundance of negative or pessimistic opinions, which usually indicates a bearish trend. At present, the data shows an increase in bearish sentiments.

Should this attitude continue, it’s possible that Dogecoin might find it tough to generate increased interest. As a result, its price might be influenced by a decrease, possibly falling below the $0.48 level.

DOGE Price Prediction: Lower Lows Next

On the 4-hour timeframe, Dogecoin (DOGE) is currently trading beneath a pessimistic triangle formation. This triangle pattern is characterized by a descending top line and a more level bottom line.

This common trend usually indicates that the price is continuing to decrease due to persistent selling pressure that forces the price lower, while potential buyers find it challenging to uphold a level of support at the flat trendline.

Given that DOGE’s price is currently beneath its lower support level, it indicates a potential struggle for bulls to drive up the meme currency in the immediate future. Consequently, there’s a possibility that the cryptocurrency’s worth could drop below the $0.36 mark.

Conversely, should public opinion on Dogecoin become optimistic and trading volume increases significantly, it’s possible that Dogecoin could reach a price of $0.45 in that circumstance.

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2024-12-18 16:26