Dogecoin [DOGE] has seen a significant increase in retail activity, marking a phase characterized by high retail participation.
This period is known as “too many retail traders,” and historically, it has meant that Dogecoin could soon face another price drop, as it did in May 2024, January 2023, and May 2021.
This surge in activity is known as FOMO (fear of missing out), which can lead to large sell-offs, manipulation to eliminate late entrants into the market.
However, this potential decline could set the stage for a significant rebound that could even push DOGE to new highs.
Such cycles are common in highly volatile, meme-driven markets, where emotional trading can lead to rapid price changes.
The current retail frenzy indicates that interest in Dogecoin is strong, setting the stage for significant market moves in the near future.
Number of trades across all exchanges
Dogecoin also set a new record for total trading volume across all exchanges, reaching an all-time high in November 2024.
The surge in trading activity reflects growing interest in the meme-based cryptocurrency, surpassing peaks seen in early 2021 and mid-2023.
The surge in trading volume coincided with a period of heightened price volatility, indicating increased participation. As trading frequency soared, DOGE’s price also showed significant volatility.
This trend was particularly evident in November, with transaction volumes in both spot and futures markets rising sharply, highlighting the active participation of traders around the world.
This milestone trading activity for Dogecoin indicates renewed enthusiasm in the crypto community, potentially bringing Dogecoin more attention and investment.
Cryptocurrencies continue to attract a diverse audience, fueled by underlying community support and widespread media coverage, leading to volatile yet compelling market performance.
DOGE Price Prediction
A rally to new highs is possible as retail investors’ FOMO on DOGE suggests another drop could occur, thus attracting traders who enter now.
DOGE on the four-hour chart highlights significant price action and corresponding volume. Notably, the chart marks two notable rallies, with DOGE surging in anticipation of another rally soon.
The first rally saw the price rise from around $0.125 to $0.175, a gain of 40.42%.
Likewise, the second prominent surge reached $0.43, indicating another increase of 208.59%, and it is expected to rise by another 208.58% to surpass $1.
These peaks coincide with the RSI (Relative Strength Index) falling into the “oversold territory,” which suggests that traders may have taken advantage of a potential buying opportunity.
Each dip into the oversold territory was followed by a sharp increase in price, indicating strong buying pressure after a sharp sell-off.
At press time, the RSI was trading near the oversold territory, which hints at the possibility of another uptrend if past patterns hold true.
