Crypto: Dogecoin Skyrockets With +75% Volume

Dogecoin has emerged as a notable crypto asset this week, experiencing a price surge to $0.27 alongside a significant 75% increase in trading volume compared to its average. This momentum could potentially signal a new phase for the meme-inspired cryptocurrency. More details are explored below!

In Brief

• Dogecoin's trading volume jumps by 75%, challenging the $0.27 resistance level.
• Strong support at $0.26 attracts traders despite prevailing macroeconomic uncertainties.

Dogecoin Attracts Crypto Traders with Exploding Volume

On July 22nd, Dogecoin witnessed a substantial increase in activity. Its trading volume exceeded $720 million, a considerable jump from its typical average of $408 million. This surge points to a renewed interest from traders, even amidst a challenging macroeconomic environment.

Furthermore, the price of DOGE is currently fluctuating within a narrow range between $0.26 and $0.27. However, retracement signals observed on high-volume candles are attracting attention.

The $0.27 mark is acting as a strong resistance point. Despite attempts to break through, selling pressure dominated towards the end of the trading session, pushing Dogecoin's price back towards $0.26.

Notably, at 05:06 GMT, a one-minute candle recorded a peak trading volume of $10.47 million, followed by a sudden $0.01 price drop. This could indicate significant algorithmic trading activity or tactical profit-taking.

DOGEUSD chart by TradingView

Memecoin DOGE Defends Its Support: Bullish Signals?

Multiple rebounds at the $0.26 level suggest a robust technical support zone. Analysis indicates a subtle but steady accumulation. Crypto traders appear to be anticipating a short-term recovery.

• The Relative Strength Index (RSI) remains neutral.
• The Moving Average Convergence Divergence (MACD) shows stagnation.

These indicators suggest a waiting period before a potential bullish breakout.

Another key point: Institutional investors view Dogecoin as a speculative "high beta" asset, meaning its price is highly sensitive to broader market movements. To confirm a genuine trend reversal, crypto analysts will be monitoring:

• Volume exceeding $750 million.
• A decisive close above $0.27.

Conversely, a drop below $0.256 could trigger stop-loss orders, potentially driving the price down to around $0.24.

Despite the unstable market context, Dogecoin is demonstrating impressive resilience. Its performance is capturing the attention of crypto traders, with technical signals warranting close observation throughout the remainder of the cycle.