Meme Coin’s Transaction Volume Jumps: 400% Increase

According to the securities filing shared on October 4, Elon Musk sent a letter to Twitter announcing his intention to restart the acquisition deal. Musk, on the other hand, shared a tweet on this subject. All this news dogecoin skyrocketed its price and trading volume.

Following these news, Dogecoin (DOGE) owners started to increase its trading volume, as the price of the meme coin, which is often supported by Elon Musk, increased by about 8%.

According to CoinMarketCap data, Dogecoin’s trading volume increased by over 400% over the same period.

Data from Santiment revealed an increase in DOGE’s whale trading and average currency funding rates, two major indicators of price direction change.

dogecoin

An increase in an asset’s whale trades and average foreign exchange funding rates gives a significant prediction of the future of a price rally. But to assess the validity of this thesis, we need to take a close look at Dogecoin’s last 24 hours.

According to CoinMarketCap data, the meme coin is trading at $0.06492 as of the time of this news. Transaction volume has also increased by 428% in the last 24 hours.

According to Santiment’s data, the biggest move DOGE saw last week was the spike in price and trading volume.

In the daily chart, Elon MuskDOGE’s Money Flow Index (MFI) continued its uptrend to mark its place in overbought territory. At press time, the MFI was ranked at 82.

Chaikin Money Flow followed a similar path. At the time of writing this news, the dynamic line (green) of the Chaikin Money Flow (CMF) was standing 0.05 above the middle line. In an uptrend, this indicated that buying pressure for DOGE continued to increase.

Also, the Relative Strength Index (RSI) was above the 50 neutral zone at 56.34 at press time.

Dogecoin’s four-hour chart continues to send warning signals. Although still high, the positions of MFI, CMF and RSI showed sellers slowly returning to the market.

Following the news on 4 October, these indicators climbed to overbought levels. Sellers who failed to sustain the move started a downside correction.

At press time, the RSI was approaching the midline; MFI 73 lost its place in the overbought zone and was seen at CMF 0.25.

At the time of writing the news, the weighted sentiment metric is positioned in a downtrend, indicating a declining sentiment in the DOGE market.

You can follow the current price action here.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.


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