In the past 24 hours, the price of Dogecoin (DOGE) has risen by 2%, fluctuating between $0.39 and $0.41. Despite Bitcoin's strong recent performance, Dogecoin missed the upward trend, falling nearly 6% over the past week. However, the increase in investor activity and token circulation for Dogecoin indicates that its market potential should not be overlooked.
Increase in token circulation
According to on-chain analyst Ali Martinez, Dogecoin's circulation increased by 5.8 billion DOGE in the past 24 hours. Most of these tokens were previously idle and have recently been transferred and reactivated.
Especially the transfer of long-held tokens, which may indicate that large holders or whales are taking profits or adjusting their positions. A surge in token circulation often drives an increase in market speculation, leading to price fluctuations.
RSI analysis: Short-term buy signal
The relative strength index (RSI) of Dogecoin is currently in the neutral zone, indicating that the market is neither overbought nor oversold. Since November, the RSI has retreated from the overbought zone, suggesting that Dogecoin's price has cooled off over the past month.
However, the RSI shows a slight upward reversal, which may indicate that the market could experience some buying momentum in the coming days. As investor sentiment gradually warms up, Dogecoin may follow Bitcoin's upward pace, even though its current performance lags behind Bitcoin.
Net flow from exchanges and holding behavior
According to data from Coinglass, Dogecoin's net flow is -67.35 million dollars, indicating that more DOGE is being withdrawn from exchanges rather than deposited. This suggests that investors are more inclined to hold long-term rather than trade, which typically means there isn't significant selling pressure in the market, potentially leading to more stable prices.
Future outlook for the Dogecoin market
Although Dogecoin has not seen a strong upward trend like Bitcoin at the moment, the increase in its token circulation and holding behavior of investors indicate that there is some upward potential in the market.
With the increase in speculative sentiment and market activity surrounding Dogecoin, it may catch up to Bitcoin's rise in the coming days, and even experience its own performance after Bitcoin breaks through higher prices.
Billy Markus's defense
Billy Markus, the co-founder of Dogecoin, defended the original intention of Dogecoin on social media, stating: "All meme coins created after Dogecoin were made to make money; they lack the soul of Dogecoin."
This statement not only reflects the cultural background of Dogecoin but also brings investors' attention back to the community value and long-term potential of Dogecoin, especially as the crypto market matures.
