Dogecoin Trading Volume Skyrockets 87%, Prices Still Under Pressure

Dogecoin trading volume skyrocketed 87% (Photo; Doc. Bitcoinist)

JAKARTA - Dogecoin (DOGE), a dog-themed crypto asset that was originally created as a joke, recorded a significant increase in trading volume. According to data from CoinGlass, Dogecoin's trading volume soared to 87%. However, despite the surge in trading volume, DOGE's price actually fell 5.20% in the last 24 hours, indicating uncertainty that still hit the crypto market.

This week, the price of Dogecoin lost about 7%, indicating negative sentiment hitting investors, coupled with stock market corrections. Although DOGE showed an impressive increase in trading volume, prices remained unable to penetrate important resistances and continued to be depressed. This price drop not only disappointed investors, but also showed that the increase in trading volume was not strong enough to reverse the bearish trend that has occurred in recent months.

The figure of Tesla CEO, Elon Musk, who used to often trigger a Dogecoin price spike through his tweets, this time did not have a significant impact. Although Musk had attracted the attention of the crypto community with a comment on social media X (formerly Twitter), interactions related to Dogecoin were unable to raise prices significantly. In 2021, Elon Musk's comments once pushed the price of Dogecoin soaring 339% to reach 0.032642 US Dollars (Rp503). DOGE's highest peak occurred on May 8, 2021, when prices touched 0.682 US Dollars (Rp10,526). However, Musk's endorsement appears to be less capable of triggering a similar spike.

A significant price drop or losing a zero is a major blow to Dogecoin investors. With market conditions moving towards the extreme fear zone, optimistic investors (bulls) must be patient and wait for the right moment to return to the market. Currently, Dogecoin continues to struggle to penetrate the critical resistance level, with a downward trend supported by technical indicators such as the 200-day EMA which is still far above current prices. This shows that in the long term, bearish sentiment towards DOGE still dominates the market.