After days of trading in a range, Dogecoin saw a brief break on Aug. 29 in a rise that propelled it to highs of $0.068.
Dogecoin's price had surged in response to favorable developments on the crypto market. The dog-themed crypto asset rallied alongside the rest of the market, buoyed by a major win for asset manager Grayscale in its lawsuit against the U.S. Securities and Exchange Commission (SEC).
Another factor that may have sparked optimism among DOGE holders was the news that social media platform X obtained a license for payments.
According to reports, X (formerly Twitter) obtained a currency transmitter license to provide payment services in Rhode Island. This would allow the platform to offer payment services in seven states: Arizona, Missouri, Georgia, Maryland, Michigan, New Hampshire and Rhode Island.
As expected, traders jumped into the market volatility, pushing Dogecoin's 24-hour trading volume up by a whopping 230%.
Increased volatility generally leads to higher trading volumes in any market as seasoned traders buy and sell large quantities to capture profits.
Likewise, the rise in Dogecoin volumes might have been caused by investors anticipating a major move in price. That said, the total number of units traded between buyers and sellers, or trading volume, is, however, said by some to be an unreliable measure of investor positioning.
At the time of writing, DOGE had pared its intraday gains and was marginally down in the last 24 hours to $0.068. On the upside, a break above the daily moving averages of 50 and 200, located at $0.07 and $0.074, respectively, would be the first sign of strength.
Ahead of this big break lies an intermediate barrier at $0.068, which Dogecoin must scale before its big move. On the contrary, in the event of a downward move, Dogecoin will eye the support at the $0.056 and $0.06 levels.