DOGECOIN (DOGE) recently saw a movement, including a massive transfer of 100 million DOGE (worth 25.4 million dollars) in Binance, which increases speculations on its next market management. By currently negotiating at $ 0.2,551, DOGE has shown a certain recovery, but concerns persist as to its ability to maintain a break. Let’s dive into key factors in play.
Dogecoin prices action: will support hold?
DOGE recently rebounded on a crucial level of support around $ 0.25, referring to a possible short -term recovery despite the lower trends. This level has historically been significant, potentially marking a support area that could feed a future rally. However, the current DOGE graph shows it in a formation of downward channels, indicating continuous downward pressure. The relative resistance index (RSI) of 37.93 suggests that DOGE is currently occurring, which means that it could see a short -term rebound.
The activity of the network down and the lowering indicators
The activity of the Dogecoin network has also raised concerns. On February 20, the number of daily active addresses dropped to 48,482, while the number of transactions fell to 32,054. These decrease the activity of the signal, which could affect liquidity and cause greater price volatility. This lack of network commitment is worrying for a cryptocurrency that is based on strong and active user basis for growth.
In addition to the decrease in network activity, the market value of Doge for the value achieved (MVRV) long / short also fell to 11.52%. This negative change indicates that many holders are at a loss and could cause increased sales pressure. Such a feeling suggests that traders can choose to sell to avoid other losses, which could slow down the chances of Doge for an escape.
Mixed signals on the derivative market
The Dogecoin derivative market tells a somewhat mixed story. Although the negotiation volume 24 hours a day fell 29.33% to $ 1.88 billion, open interests experienced a modest increase of 1.09%. The drop in volume indicates a lower participation, which reflects an increasing uncertainty of the market. On the other hand, a significant increase in the volume of options of 79.45% could indicate that traders position themselves for potential volatility. This suggests that, despite the challenges, there is still a certain anticipation of a market decision which could affect the action of Doge prices.
The upcoming road for Dogecoin
While Dogecoin has rebounded on the key support and shows certain signs of potential short -term recovery, several obstacles behave a strong escape. The drop in network activity, a negative MVRV and a reduced participation in the derivative market paint a prudent image for Doge. Although it can undergo short -term rebounds, the global feeling suggests that a sustained break could remain elusive at the moment.
At this stage, the action of DOGE prices remains uncertain, and its next decision will depend on the way the market takes up future challenges. While some hope for a rally powered by whale activity or potential support, others fear that Dogecoin will continue to fight against lowering pressures. The next few days and weeks will be crucial to determine if Doge can overcome these obstacles or stay in a prolonged downward trend.
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