As an unexpected development dogecoin (DOGE) recorded a surprising increase in daily trading activity this month.
Known for its loyal and enthusiastic community, cryptocurrency unit witnessed an increase of 8,220% in daily transactions. it happened. It skyrocketed from around 25,000 last Saturday to a peak of 2.08 million.
This surprising jump in activity has confused many investors and traders. The dramatic increase in Dogecoin’s trading activity is in stark contrast to its recent price performance.
for the last 20 days, meme coinThe coin is apparently moving sideways, grappling with low trading volumes and liquidity. Dogecoin has been in a steady downtrend for the past three months and has lost 54% compared to its local top.
No, there’s nothing wrong with this chart.. Daily Dogecoin transactions saw an 8220% increase this month, from around 25k to a peak of 2.08 million last Saturday🤯https://t.co/hwMYFuDd11#dogecoin #dogearmy pic.twitter.com/93PvjcBdQc
— IntoTheBlock (@intotheblock) May 31, 2023
NEWS CONTINUES BELOW
The relative strength index (RSI), a momentum oscillator that measures the speed and change of price movements, stands at 41 for Dogecoin. This figure generally indicates that the current trend will continue. It further reinforces the ongoing bearish sentiment around Dogecoin. This difference between trading activity and price performance raises questions about the reason for the spike. The potential causes are numerous, ranging from a significant shift in market sentiment to coordinated whale activity and even network testing.
It is important to remember that a sudden increase in trading volume does not always mean an increase in price. It is possible for the value of a cryptocurrency to be affected by changing factors. Numerous factors can be counted, including market sentiment, regulatory news, and technological developments. In Dogecoin’s case, while the surge in activity was intriguing, it did not lead to a price increase.
You can find the current market movements here.