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Dogecoin reversed a five-day rise, but on-chain data suggests that there might still be demand in the market.
According to CoinGlass, 24-hour data for spot flows, Dogecoin reported $167.49 million in inflows and $175.15 million in outflows, accounting for a negative net inflow of $7.66 million, with the net change yielding a 423% drop.
Spot flows measure the capital flow of the cryptocurrency spot market. A drop in spot outflows might imply withdrawals from cryptocurrency exchanges as holders move their coins from centralized exchange wallets to private, self-custody or external wallets. This tightening of supply might be considered positive as buyers purchase the recent price drop.
At the time of writing, DOGE was down 2.11% in the last 24 hours to $0.0986. During the week, a burst of buying lifted prices, with Dogecoin rising for five days at a stretch from March 12 to March 16. The rise saw Dogecoin surpass the daily MA 50 at $0.098, which has limited its price since January.
Dogecoin price
Dogecoin rose to $0.103 on Monday, where it encountered resistance. If this is decisively broken, Dogecoin may rally to $0.12, where another resistance might be faced. A break and close above $0.12 might signal that the bulls are back in the driver’s seat, with the next target being $0.16.
Another scenario for the Dogecoin price is possible sideways trading between $0.09 and $0.12. T. Rowe Price has filed to hold a broad set of digital assets in its new exchange-traded fund (ETF), including Dogecoin.
In a recent development, the asset manager, which has $1.8 trillion in assets under management, filed an amended S-1 registration statement with the U.S. Securities and Exchange Commission (SEC), offering new details about its planned Price Active Crypto ETF.
The Fed meeting that begins today and concludes Wednesday remains the focus for traders. CME FedWatch still prices a 95% probability of Fed rates being held at 3.5% to 3.75%, so the decision itself is a non-event.
Dan Burgin
Vladislav Sopov
