Dogecoin (DOGE) is currently experiencing a massive surge in trading volume, with large transactions amounting to $1.09 billion.
The indicator purportedly tracks large trades made on a daily basis by whales and institutional investors. A high volume of large trades typically indicates increased activity from these big players, both buying and selling.
Dogecoin's large transaction volume exceeds $1.09 billion during market downturn
In the past 24 hours, Dogecoin’s trading volume reached $1.09 billion, which is equivalent to about 8.61 billion DOGE.
Meanwhile, Bitcoin fell to nearly $65,000 in Tuesday trading as traders reacted to the U.S. government's plan to potentially sell off some of its key cryptocurrency holdings. The large amount of cryptocurrency seized was accumulated in a crackdown on darknet markets such as Silk Road.
Dogecoin has also been affected by the bearish market trend and is trading in the red as of the latest update.
Dogecoin price dynamics: support and resistance analysis
After falling for four consecutive days, Dogecoin rebounded from the 50-day SMA to $0.123 in early trading today. This suggests that the bulls may try to turn this level into support.
Despite the attempt, Dogecoin continues to struggle, with the price falling 3.16% to $0.125 in the past 24 hours and 5.42% in the past week. Whether the efforts of the bulls to fight against the bears will be effective remains uncertain.
If the bulls succeed in establishing the 50-day SMA as support, Dogecoin could experience a rally that could target the 200-day SMA at $0.134. A successful breakout of this level could result in further gains that could propel the price towards $0.14 and possibly start a move towards $0.18.
Conversely, if the bears succeed in sinking the price below the $0.12 support, the increased selling pressure could push Dogecoin down to $0.10.
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