Dogecoin's price has increased by 2% in the past 24 hours, trading between $0.39 and $0.41. Data shows that 5.8 billion previously inactive Dogecoins have been transferred recently. Although Bitcoin has seen a strong rise, Dogecoin has dropped nearly 6% in the past week, missing out on Bitcoin's gains.
From the increase in token circulation and the decrease in net exchange flow, investor activity has increased, with more people starting to hold or speculate.
Increased investor activity in Dogecoin
In the past 24 hours, Dogecoin has risen by 2%, while Bitcoin has risen by 4% during the same period. According to CoinGecko data, the price of this meme coin has remained between $0.39 and $0.41. Despite Bitcoin's strong performance, Dogecoin has fallen nearly 6% over the past week.
One reason for the rise in Dogecoin's price seems to be the increase in token circulation. On-chain analyst Ali Martinez pointed out through Santiment's chart that 5.8 billion DOGE were circulated in the past day.
Recently, millions of Dogecoin tokens that were previously idle have suddenly become active, with many previously stagnant tokens beginning to move. This shift, especially the liquidity of long-held tokens, may indicate that large holders or whales are taking profits or rebalancing their positions.
It is important to note that with the increase in circulation and rising prices, this may also indicate a surge in speculative activity.
It may take some time to see if Dogecoin will follow Bitcoin's rise.
We also looked at Dogecoin's relative strength index (RSI) for more clues about price trends. As of now, the RSI is in a neutral zone, meaning it is neither overbought nor oversold.
Since November, the RSI has been retreating from the overbought range, suggesting that prices have cooled over the past month. However, the RSI has seen a slight rebound, which may indicate some buying strength in the coming days. Coinglass data also reflects investors' holding behavior.
On December 16, Dogecoin's net trading flow was -$67.35 million, indicating that the amount of DOGE withdrawn from exchanges exceeded the amount deposited. This negative net flow may help alleviate selling pressure or at least stabilize prices. It is worth noting that DOGE has not participated in the recent surge in the same way Bitcoin has, nor has it triggered a similar chain reaction in the meme coin market.
In light of Dogecoin's weak price performance, co-founder Billy Markus defended the original intent of Dogecoin. In a post on X, he stated, 'All projects that came after Dogecoin saw its success and were created to make money, so they lack the unique spirit of Dogecoin.'