Dogecoin's price has increased by 2% in the past 24 hours, trading between $0.39 and $0.41. Data shows that recently, 5.8 billion previously inactive Dogecoins have been transferred. While Bitcoin has recently surged, Dogecoin has fallen nearly 6% over the past week, missing out on Bitcoin's gains.
Looking at the increase in token circulation and the decrease in net exchange flow, investor activity has heightened, with more people starting to hold or speculate.
Investor activity in Dogecoin has increased.
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 charts 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 dormant tokens starting to move. This change, particularly the movement of long-held tokens, may indicate that large holders or whales are taking profits or rebalancing their positions.
It's important to note that with the increase in circulation and rising prices, this may also indicate a rise 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 the price movement. As of now, the RSI is in the neutral zone, indicating that it is neither overbought nor oversold.
Since November, the RSI has been retreating from the overbought range, suggesting that prices have cooled down over the past month. However, the RSI has recently shown a slight rebound, which may indicate some buying strength in the coming days. Coinglass data also reflects the holding behavior of investors.
On December 16, Dogecoin's net trading flow was -67.35 million, meaning that the amount of DOGE withdrawn from exchanges exceeded the amount deposited.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 like Bitcoin has, nor has it had a similar ripple effect on 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 the projects that came after Dogecoin saw its success, and as a result, they were all created to make money, so they lack the unique spirit of Dogecoin.'