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Dogecoin (DOGE) is exhibiting mixed sentiment on the market with its daily trading volume in the green. Despite this impressive uptick, the hourly DOGE chart shows that the meme coin is maintaining a death cross, a sign of massive selling pressure on-chain.
Dogecoin volume might mean nothing
According to data from CoinMarketCap, Dogecoin volume has jumped by 76% to $1.01 billion. This metric is unusual, as most altcoins in the top 10 are facing a negative drawdown.
The volume uptick has not yet translated into a definitive price increase for Dogecoin. In the past 24 hours, the price of DOGE has shed 0.5% of its market value and was trading at $0.1254.
Altcoin price action appears similar across the board, a sign that the Dogecoin trading volume might be passive in buying terms. Nonetheless, it offers a good spotlight for engagement in the meme coin ecosystem.
Not shocking is the fact that Dogecoin is showcasing a death cross on the hourly chart. This death cross is formed when a short-term moving average crosses below a longer-term average.
Notably, this death cross flipover is not new for DOGE and related altcoins, and it offers a clear overview for when the market will improve. The good news for investors comes from the accompanying Relative Strength Index (RSI) reading of 35.
This shows oversold conditions on Dogecoin, and despite the consolidation, the coin will eventually record a price breakout.
Dogecoin rebound fundamentals to watch
With the year coming to an end, Dogecoin has now achieved negative 61% growth year-to-date (YTD).
This sell-off comes despite the launch of the spot Dogecoin ETF in the United States and the inclusion of the meme coin on corporate firms’ balance sheets.
Although the Wall Street exposure has not yielded much of a result for Dogecoin in the past few months, it may make a difference in the coming year. As an altcoin largely correlated with Bitcoin, DOGE's rebound factors appear multifaceted.
In all, the Dogecoin whales, treasury firms and Bitcoin resurgence are all to watch in pulling DOGE back into the bull cycle.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team