Dogecoin [DOGE] has long surprised investors with its ability to create momentum in the market. From social media hype to active trading, Dogecoin has been grabbing the spotlight of traders and enthusiasts alike. While the broader cryptocurrency market remains volatile, Dogecoinâs recent moves suggest that the currency is building up for another strong rally.
Cash flow in
The 19% increase in net inflows indicates that more Dogecoins are being deposited into exchanges than withdrawn. This increase reflects investors preparing for future price movements, possibly in a positive direction.
Increased money flows can sometimes signal bullish market sentiment, as traders may be positioning for future profits.
Data from Coinglass adds to the optimism. Dogecoinâs liquidation fund is currently over $5 million at a price of $0.108. This means there is huge interest and leverage in the market, betting on an upward trend.
Liquidations of this size typically indicate strong market activity and, in most cases, trigger further price increases if market sentiment remains the same.
Growing Social Media Conversation Fuels Dogecoin's Bullish Trend
According to data from Santiment, Dogecoin social media volume has been growing moderately over the past month. While this is not a direct driver of price action, it is clearly an important indicator of market sentiment.
Often, increased social media volume is a sign of community interest and market engagement.
Considering the large liquidation pool, spikes in social volume, and a 19% increase in net inflows, the current sentiment towards Dogecoin is relatively positive.
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