Dogecoin has recently caught the attention of the crypto community with an impressive 76% surge in its daily trading volume. However, this significant increase comes against the backdrop of a persistent death cross on the hourly chart, raising questions about the meme coin’s near-term trajectory.
According to the latest data from CoinMarketCap, Dogecoin’s volume has climbed to an astounding $1.01 billion. This spike is particularly noteworthy as many other top altcoins are experiencing negative trends. Despite the boost in trading volume, Dogecoin’s price has not mirrored this trend, shedding 0.5% of its market value to trade at $0.1254 over the past 24 hours.
Dogecoin and the Death Cross Phenomenon
The death cross is a technical analysis pattern that occurs when a short-term moving average crosses below a longer-term average, often signaling increased selling pressure. This pattern is not new to Dogecoin or similar altcoins, but it serves as a crucial indicator for potential market improvements. Despite this, the current Relative Strength Index (RSI) reading of 35 suggests oversold conditions, which could lead to a future price breakout.
Potential Rebound Fundamentals for Dogecoin
As the year concludes, Dogecoin has recorded a negative 61% growth year-to-date (YTD). This downturn persists even after significant developments such as the launch of a spot Dogecoin ETF in the United States and the meme coin’s inclusion in corporate balance sheets.
Despite minimal short-term gains, these factors could play a pivotal role in Dogecoin’s long-term recovery, particularly given its correlation with Bitcoin. The influence of Dogecoin whales, treasury firms, and a potential resurgence in Bitcoin are elements that could drive Dogecoin back into a bullish cycle.
Overall, while the current market sentiment around Dogecoin remains mixed, the combination of increased trading volume and oversold conditions presents a complex yet potentially promising outlook for this popular altcoin.
