Retail fever surges: Dogecoin’s new trend
Dogecoin [DOGE] has recently seen a surge in retail activity, officially entering a phase of overwhelming retail participation. This phase is vividly referred to as the "too many retail traders" period. Looking back at history, similar situations occurred in May 2024, January 2023, and May 2021, and the price of Dogecoin fell rapidly afterwards.
This sudden burst of activity is actually FOMO (fear of missing out) at work, which may lead to large sell-offs and even manipulation in the market, the purpose of which is to eliminate those who enter the market late.
However, this seemingly dangerous potential decline may also lay the groundwork for a subsequent sharp rebound, and may even help DOGE hit a new all-time high. In a highly volatile and meme-driven market environment, such ups and downs are extremely common. After all, emotional trading often causes prices to change rapidly. The current retail frenzy fully demonstrates the public's strong interest in Dogecoin, which undoubtedly lays a key foreshadowing for the upcoming major market trends.
Trading volume exploded: record activity
Dogecoin successfully set a new record in terms of total trading volume across all exchanges, with the time being set in November 2024, with the peak trading volume breaking history.
The surge in trading activity is a clear reflection of growing interest in memetic cryptocurrencies, which has surpassed peak levels in early 2021 and mid-2023. The spike in trading volume coincides perfectly with a period of heightened price volatility, certainly indicating a significant increase in market participation. DOGE’s price volatility has become increasingly pronounced as trading frequency soars. This trend was particularly prominent in November, with the number of transactions rising sharply in both the spot market and the futures market, reflecting the active participation of global traders.
This landmark trading activity of Dogecoin fully demonstrates the renewed enthusiasm of the crypto community, which is likely to attract more attention and investment funds for Dogecoin. Driven by the strong support of the grassroots community and extensive media coverage, Dogecoin continues to attract a variety of audiences, resulting in its market performance that is both volatile and attractive.
The fog of price prediction: the game of ups and downs
Given the FOMO psychology of retail investors towards DOGE, it suggests that the price may face the risk of falling again, which may attract traders who enter the market now. If a subsequent decline does occur, it is very likely to trigger a rebound and create a new high.
From the four-hour chart, DOGE’s price fluctuations are extremely significant, and trading volume closely echoes them. Two notable rallies are clearly marked in the chart, as DOGE prices soared in anticipation of another rally. The first bounce saw it climb from around $0.125 all the way to $0.175, a gain of 40.42%. Coincidentally, the second significant surge brought the price to $0.43, an increase of 208.59%. According to this trend prediction, it is expected to rise again by 208.58%, and then break through the $1 mark.
It is worth noting that these price peaks coincided with the time when the RSI (Relative Strength Index) fell into the "oversold zone", which means that traders may have cleverly seized potential buying opportunities. Each drop into the oversold zone was followed by a sharp rise in prices, which fully demonstrates that after a sharp sell-off, the market will have strong buying pressure. At the time of writing, the RSI is just near the oversold zone, and if the past price fluctuation patterns are still valid, then Dogecoin may be about to start another uptrend.
The information provided in this article is for informational purposes only and does not constitute advice of any kind.