The world’s original meme token in market cap, Dogecoin, saw a stable upside strength in late June, following a move to 2022 lows at $0.050. Meanwhile, DOGE responded to the low volatility phase that emerged for some weeks with an uptick on August 14 and 16. That saw the altcoin outshining several assets and hitting $0.086.
Dogecoin surged about 20% in three days, building faith for brighter days ahead. Nevertheless, a drastic fall followed the upswing. While publishing this post, Dogecoin changed hands at $0.06827, with a $9,058,654,268 market capitalization.
Whales in the Game
Whales timed their exit accurately as the cryptocurrency community debated about the increments. That saw large wallet investors earning maximum returns.
Data from Santiment indicated that whales’ transfer count hit the highest level when DOGE price peaked, explaining the massive selling momentum at the asset’s high. The meme coin plummeted severely after the transfer count hit its peak.
Metrics
Besides the price plunge, Dogecoin’s social dominance dipped. That indicated reduced interest from the cryptocurrency community in the alternative token. Also, the price plummet saw a colossal drop in Dogecoin’s active addresses. This index declined from 180,000, the highest figure since April, to about 71,000 on August 18.
Surprisingly, Dogecoin’s volatility increased by over 40% in a week (due to the fall), rising from six-month lows of 0.56 to 0.91. Nevertheless, assessing the 4hr char indicated that DOGE’s performance improved within the past few weeks, with the meme coin hitting higher lows unswervingly.
A bullish ascending triangle emerged and catalyzed Dogecoin’s initial price uptick on August 12, as the token broke the resistance zone at $0.072. Moreover, the EMA (Exponential Moving Average) ribbons showed that bulls eventually dominated the marketplace following a fight with the bears, triggering a price increase.
Nevertheless, a divergence between the RSI (Relative Strength Index) and DOGE’s price emerged as the crypto printed twin peaks. The CMF (Chaikin Money Flow) also formed similar divergences, confirming a potential drop. The narrative fulfilled itself, and Dogecoin saw price dips, losing 14% within a day.
Stay tuned for upcoming developments in the cryptocurrency world.
