In October, the price of Dogecoin$DOGE was $0.10. By the first week of December, it had risen to $0.48, and several analysts speculated on the potential for further strengthening. The price increase may be linked to Donald Trump's election as President of the United States and the return of retail investors.
A few weeks after Trump's election, the transaction volume of Dogecoin rose to $5.69 billion, reflecting significant interest in the asset. However, at the time of writing, according to Santiment, the volume has fallen to $415.31 million. This is the lowest value since November 4.
An increasing volume is usually a bullish signal. Therefore, the recent decline, if it continues, suggests that DOGE may drop in price again in the short term.
Another indicator suggesting a decline for DOGE is weighted sentiment. The indicator assesses the perception of the cryptocurrency in the market based on comments on social platforms. A positive value reflects a bullish sentiment in the market, while a negative value signals pessimism. Currently, the indicator stands at -0.57, indicating an increase in bearish comments.
If this sentiment persists, Dogecoin may face difficulties in attracting demand. As a result, the price may come under pressure and fall below $0.48.
On the 4-hour chart, DOGE is trading below a descending triangle. This is a bearish pattern with a declining upper line and a flatter lower boundary. The pattern usually suggests a continuation of the decline, as sellers push the price down while buyers cannot defend the support.
Currently, DOGE is below the support line. This suggests that bulls may not push the meme coin up in the near future. Instead, the coin's value may drop below $0.36.
However, if the sentiment around the token becomes bullish and trading volumes increase, it could rise to $0.45 #2024withBinance $CTXC $SCR
