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Dogecoin records inflows of $5 billion in 5 weeks as DOGE trading volume skyrockets

Dogecoin records inflows of $5 billion in 5 weeks as DOGE trading volume skyrockets

Adoption-related growth helped Dogecoin (DOGE) in 2022, but the cryptocurrency’s price hasn’t matched its 2021 peaks.

Nevertheless, data acquired by Finbold has shown that the meme coin has seen an influx of $5 billion into its market capitalization in the last five weeks. On October 25, DOGE’s market cap stood at $7.93 billion, and today it’s $13.2 billion, an increase of $5.27 billion in 34 days, a total rise of 66.5%.

Dogecoin adds over $5 billion in 5 weeks. Source: CoinMarketCap

In that time, trading volume skyrocketED 290% from $216 million to $844 million. Currently, Dogecoin is trading at $0.09889, down 4.49% in the last 24 hours and up 15.18% in the previous week.

Dogecoin 1-day chart. Source: CoinMarketCap

Dogecoin technical analysis

The short-term technical analysis (TA) for DOGE on the 1-day gauges is relatively bullish. In particular, the summary gauge points to a ‘buy’ sentiment at fourteen while moving averages (MA) also suggest a ‘strong buy’ at thirteen.

Dogecoin 1-day technical chart. Source: TradingView

However, the oscillators point to ‘sell’ three, according to the data obtained from the market analytics platform TradingView on December 2.

Over the last three Christmases, Dogecoin has managed to record steady year-on-year (YoY) growth, yet, DOGE’s 2022 Christmas prediction is bearish, with the asset projected to trade at $0.065 on December 25.

Elon Musk’s influence on Dogecoin

Elon Musk, CEO of Tesla (NASDAQ: TSLA), is primarily credited for having an influence on the recent price increases in Dogecoin. 

Musk continues to be one of the most vocal proponents of the meme cryptocurrency, and his acquisition of Twitter is widely believed to confer increased usefulness on DOGE. Notably, there is a lot of speculation that Twitter could include support for Dogecoin as a payment option in the near future.

According to a study Finbold published on November 28, the performance of DOGE has resulted in more than 60% of its investors staying in profit. Given that 69% of holders have been hoarding the token for more than a year, it is safe to assume that a sizeable proportion of them are banking on Dogecoin’s potential in the long run.

In this vein, investors are upbeat because of forthcoming enhancements to the network. For example, it was recently reported that Musk and Vitalik Buterin, the co-founder of Ethereum, are making plans to combine their efforts and further develop DOGE.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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