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Dogecoin: Despite rising trading volume, DOGE’s future looks hazy – Why?
Dogecoin’s recent surge in trading volume may not be enough to guarantee a sustained upward momentum. The digital currency’s price faces resistance at current support levels amid mixed technical signals and reduced market activity.
According to recent data, Dogecoin has witnessed a substantial increase in its trading volume, with over 1 billion tokens exchanged within the past 24 hours. While this uptick is significant, it does not necessarily indicate that DOGE is poised for long-term growth.
At present, the price of Dogecoin is at $0.1962 per token, having dropped by 2.02% in the last day. The current price action indicates a consolidation within a symmetrical triangle pattern, indicating indecision among traders.
A closer examination of DOGE’s key indicators suggests that its potential for future growth may be limited due to several factors. Firstly, the overall market sentiment has not shifted towards a clear direction, resulting in increased uncertainty and caution among participants.
Furthermore, Dogecoin’s daily active addresses have been on a downward trend since March 1st. This decline highlights a lack of conviction among traders, potentially indicating decreased faith in DOGE’s ability to rally.
In addition, the digital currency’s Open Interest has taken a slight dip of 0.02% to $1.76 billion. This reduction signifies that fewer traders are opening new positions, which may hinder the cryptocurrency’s ability to maintain its current momentum.
As a result, it is imperative for investors and traders alike to exercise caution when evaluating DOGE’s future prospects. A clearer directional signal is required before considering further moves in the digital currency.
It remains to be seen whether Dogecoin can regain its early 2023 form, which was characterized by significant gains. However, based on current data, it appears that any potential growth will likely be slow and difficult to sustain.
In conclusion, while Dogecoin’s recent price action may give cause for hope among investors, the current market situation does not suggest a clear path forward.
Source: https://ambcrypto.com/dogecoin-despite-rising-trading-volume-doges-future-looks-hazy-why/
