Why is Dogecoin price still depressed despite volume surge of over 200%?

Dogecoin has struggled to recover following Wednesday's rapid plunge that rocked the cryptocurrency market. At the time of writing, the price of DOGE has fallen from a high of $0.09 to a low of $0.08. Intriguingly, this is happening at a time when the meme currency’s trading volume is rising significantly; why?

Dogecoin trading volume surges over 200%

After a sharp drop in price, Dogecoin’s daily trading volume has experienced an uptick that rivals recent ones. Ultimately, DOGE’s daily trading volume increased by over 190% as interest in the currency increased.

Due to this growth, CoinMarketCap reported that trading volume exceeded $1.12 billion for the day, which is good news for the asset as it accounts for almost 9% of the volume-to-market cap ratio.

Despite the uptick in interest, DOGE has yet to see any gains. As of this writing, its price remains below $0.082. Over the same period, its price has fallen by nearly 10% and has lost all of its weekly gains.

Why is Dogecoin’s price troubled?

DOGE price seems unable to move higher, mainly due to rising selling pressure on the asset, especially from institutional investors. The “whales” among Dogecoin holders appear to be liquidating their holdings.

Sending coins to an exchange is often a sign that holders plan to sell their coins, which can have a negative impact on the price of the cryptocurrency. Therefore, this could put considerable selling pressure on the price, just like what happened with Dogecoin.

In the past 24 hours, there have been many important Dogecoin trading destinations on major exchanges. One transaction marked to be sent to the Robinhood trading platform was for 82 million DOGE, worth $6.74 million. An hour later, Whale Alert detected another large transaction, this time sending 102.27 million DOGE, worth $8.4 million, to Robinhood. If all of these trades were executed with a view to selling, the persistence of Dogecoin’s price could potentially be explained if the market recovers.

However, not all moves are doom and gloom, especially from these big-money investors. Whale Tracker recorded a transaction that transferred 151.68 million DOGE, worth $12.49 million, from Robinhood to an undisclosed wallet.What makes this transaction more positive is that the owner may be transferring the coins to a personal wallet in anticipation of a higher price.

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