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Dogecoin (DOGE), the king of meme coins, is witnessing an uptick in activity despite the prevailing fluctuations on the broader cryptocurrency market. In the last 24 hours, the trading volume has jumped by 3.08% to $2.93 billion, per CoinMarketCap data.
Bitcoin price decline weighs on Dogecoin outlook
The increase in volume suggests that holders might be in accumulation mode as they anticipate a recovery in price outlook. Notably, the DOGE dropped from a peak of $0.2269 to a low of $0.2153 within the same time frame.
The decline came as uncertainty levels increased about the possibility of a rate cut in the United States. Traders are concerned, and this has amplified the volatility of the meme coin on the market.
Additionally, Dogecoin’s BTC correlation has not helped the leading meme coin. Within this period, Bitcoin has shed approximately $3,000 as it crashed from $117,050.37 to $114,470.98. With the flagship currency witnessing a downward movement, DOGE is unlikely to break out.
As of press time, Dogecoin is changing hands at $0.2169, which represents a 2.63% decrease in the last 24 hours. The asset has been trading sideways in the last couple of hours, with anticipation growing of possible upward movement.
Some market participants believe the market will soon experience a turn and that Bitcoin’s recovery could support its movement. If DOGE breaches $0.220, it is likely to break out to higher levels.
DOGE whale accumulation effect
With trading volume in the green, Dogecoin’s upward move might not be delayed. An ecosystem whale recently made a bullish move by pulling 400 million DOGE out of an exchange, a development that suggests accumulation in anticipation of a recovery.
Meanwhile, Dogecoin futures traders are bullish as they have locked over 15 billion DOGE in the derivatives market. The surge in open interest for DOGE signals that market participants are confident of a recovery soon.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team