Can Dogecoin counterattack? An in-depth analysis of the market’s potential future trends in DOGE!
With the sharp surge in market transactions and the significant increase in exchange net flows, a deep sense of unease is quietly spreading among investors. Traders with long positions have suffered heavy losses recently, and their hard-earned profits have been almost wiped out, which undoubtedly exacerbates the pessimistic atmosphere in the market.
DOGE, the former market darling, is struggling to maintain its upward momentum, but unfortunately, the meme coin has quickly lost its previous gains this month. According to statistics, the weekly decline of altcoins reached 9.63%, the daily decline was 2.54%, and the monthly increase also shrank to 4.95%. This situation and scene can't help but make people sigh.
Recent market trends seem to reveal a cruel reality: the decline in DOGE’s value is largely due to the sharp decline in trader confidence. And this trend seems to be continuing to ferment.
The surge in trading volume and increase in supply became the last straw for DOGE. Currently, DOGE is at the end of its recession, and the root cause of all this is the surge in large-volume transactions and the significant increase in exchange net traffic. When an exchange’s net flow is positive, it means that a large amount of cryptocurrency is flowing into the exchange, far exceeding the amount flowing out. This situation will undoubtedly intensify the supply pressure on the market and push prices down.
According to detailed data from IntoTheBlock, DOGE’s net flow increased by $135.2 million in the past week, which fully demonstrates that investors are actively selling DOGE in their hands. At the same time, the number of large transactions is also increasing, with a whopping 156,000 transactions recorded in the past 24 hours alone. The highest transaction volume in the past week has climbed to an astronomical figure of 1.58 million.
Faced with such severe market conditions, the risk of DOGE prices continuing to decline is undoubtedly intensifying. The market's downturn is gradually eroding investor confidence. The 33.94% plunge in DOGE trading volume further highlighted the sharp decline in market interest. Participation in derivatives trading has seen a similar downward trend.
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