Dogecoin Slumps, But Buy Signal Hints at Rebound
The Most Important Points in Brief
Dogecoin (DOGE) is experiencing a sharp decline in futures trading volume. While the volume reached $58.2 billion in November, it has now dropped to just $992 million. At the same time, network activity is decreasing, indicating waning interest. However, there are signs of a possible trend reversal in price movement.
Decline in the Dogecoin Futures Market
Dogecoin futures trading volume has dropped significantly in recent months. In November, it peaked at $58.2 billion but has steadily declined and now stands at less than $1 billion.
This decline suggests that speculative interest in DOGE is fading. Notably, the peak trading volume coincided with a DOGE price of $0.308. Since then, the volume has steadily decreased, indicating reduced market activity.
Decreasing Network Activity
Not only has trading volume declined, but Dogecoin’s network activity is also showing a clear downward trend. The number of newly created wallet addresses dropped from 1.29 million in November to just 30,815. This development suggests that fewer new users are entering the network.
Historically, a high number of new addresses often correlates with rising prices. The current decline could therefore be another signal of weakening demand.
Technical Indicators Suggest a Possible Trend Reversal
Despite the decline, there are signs of a potential recovery. The TD Sequential Indicator, a technical analysis tool, has issued a buy signal for DOGE. This signal could indicate that the current downtrend is nearing its end.
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DOGE’s current price is stabilizing at around $0.21267. If the buy signal is confirmed and trading volume picks up again, a recovery could follow. Otherwise, further price declines may occur.
Our Assessment
The sharp decline in futures trading volume and decreasing network activity indicate weakening market sentiment. However, the technical buy signal could suggest an impending recovery. The key factors will be whether DOGE can hold its current support level and whether trading volume increases again. Investors should closely monitor the situation.
| Symbol | DOGE |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $0.19 |
| 24h % | -11.32 % |
| 7d % | -26.77 % |
| 30d % | -43.36 % |
| 60d % | -41.53 % |
| 1y % | 94.60 % |
| Market Cap | $27,459,128,852.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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