The fact that Dogecoin's trading volume is still low, a trend that has persisted over the past few weeks indicates that its momentum is waning. As a reflection of the present uncertainty surrounding the asset, the market's lack of notable activity is both worrisome and intriguing. A lack of demand is frequently linked to low volume from a bearish standpoint, which can intensify downward pressure.
DOGE has had difficulty breaking through important resistance levels, lingering at $0.34, without making any headway. The general downward trend that began following its surge to $0.48 has continued as a result of this stagnation. Because of the low trading activity, which indicates that market participants are reluctant to commit, DOGE is susceptible to additional declines. Still, there are some positive aspects to the muted volume.
In many instances, low volume during a downtrend can indicate the end of selling pressure. This could mean that bearish momentum is waning, which could lead to a reversal, or at least a brief retracement. Around $0.28, where the 100 EMA is located, Dogecoin may find support if bulls are able to intervene at this point. A recovery from this level might pave the way for one that goes higher — perhaps as high as $0.37.