While the endorsement from Elon Musk created an appealing outlook for Dogecoin (DOGE), investors appear to be starting to lose faith in the most popular meme coin, as seen from the recent trading activity.
The current state of Dogecoin entails a notable decline in transaction volume and a decrease in whale transaction count, suggesting a downturn in trading activity, per a post on X from cryptocurrency analyst Ali Martinez on February 12.
“This could be a sign that fewer people are buying, selling, or transferring DOGE, possibly due to reduced interest or confidence in it.”
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Whale transactions over $1 million have significantly decreased, hitting a peak at the price of $0.075 with a volume of 33.5 million, which marks a substantial decline from slightly over a month ago when they reached 773 million.
Charts and technicals are indecisive
Looking at the technical indicators and price patterns on various time spans for DOGE, it is hard to come to a decisive prediction as this digital asset has struggled multiple times to break through its resistance zone, which is set at $0.10 long-term, and $0.085 short-term, experiencing multiple retracements.
The market’s current momentum presents a mixed picture, characterized by the moving average convergence divergence (MACD) line positioned above the MACD signal line, indicating a bullish sentiment. At the same time, the Relative Strength Index (RSI) hovers around the neutral level of 48.
Regarding support and resistance levels, the nearest support zone lies between $0.075 and $0.080, followed by $0.070, representing areas where buying interest may emerge.
DOGE price analysis
At the time of press, DOGE was trading at $0.0801, indicating a drawdown of -3.32% in the previous 24 hours, while managing to retrace 1.59% of its profits in the last week.
In the past 30 days, this meme coin has lost -0.76% of its value.
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