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Resistance Level in Dogecoin (DOGE): Transaction Volume is Dropping!
A recent analysis report stated that the majority of #Dogecoin holders are still in profit. The pullback in recent weeks has been deep, undoing all the gains made in the second half of March. However, the selling pressure of these holders is not as heavy as feared.
The cryptocurrency has been negative since April when its price dropped below $0.2, turning the level into resistance. There were increases in social dominance, but social volume did not change much. In this case, it does not indicate bullishness, but it does show that Dogecoin's words on social media are at least consistent. Looking at on-chain metrics, we see that daily active addresses are down significantly from February highs. It has been consistently low for the last six weeks.
This was a sign that the addresses were not included in the transactions, indicating that demand was decreasing. Trading volume was relatively consistent in the first half of April. Since then, there has been a dramatic decline towards the end of the month. It has shown some recovery over the last ten days, which was encouraging but not bullish for the token.
Dormant circulation saw a huge increase on April 26. It was stated that a large amount of tokens were transferred, probably for sale. The metric has remained silent since the stated time, signaling that selling pressure has diminished. The delta for total liquidation levels was highly negative. This showed that short liquidations significantly outweighed long liquidations. In turn, we can expect prices to rise further to eliminate the mentioned liquidations. This could come after the nearest pockets of liquidity at $0.147 and $0.144 are removed. For the stated reason, this might want to see a move towards the $0.144 liquidity cluster followed by a short-term rise towards $0.155-$0.16.
