Dogecoin Volume Down 48% as DOGE Price Rallies — Why?

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Dogecoin (DOGE) experienced a significant 56% decrease in trading volume on Saturday, June 7, according to CoinMarketCap data. Historically, such a sharp decline in volume often suggests the possibility of further price declines. However, DOGE has exhibited mixed signals in the immediate term.

Currently, Dogecoin is trading at approximately $0.1869, marking a 4.89% increase over the last 24 hours.

Its market capitalization is presently $27.96 billion, with the 24-hour trading volume recovering to $922.18 million – a 56.46% increase from the previous day.

Dogecoin’s fully diluted valuation (FDV) mirrors its market capitalization, and its volume-to-market cap ratio is 3.33%. The total supply of DOGE remains constant at 149.58 billion tokens.

Bearish sentiment influenced DOGE price action on Friday, mirroring a broader sell-off across the cryptocurrency market. Investors responded to varied macroeconomic indicators, leading to profit-taking and reversing the bullish trend that had propelled markets upward in prior weeks.

Musk's fallout

Dogecoin’s price fluctuations have historically been correlated with Elon Musk’s activities and public remarks. Following his resignation from the Department of Government Efficiency (D.O.G.E.), the meme coin’s performance seems to have become less immediately reactive to his influence, though the connection is not entirely severed.

Recent tensions between Musk and the U.S. President have introduced volatility into broader markets. Tesla shares experienced a steep drop on Thursday, resulting in a $152 billion reduction in market capitalization – the largest single-day loss in the company’s 15-year history as a public entity.

This event reverberated through assets associated with Musk, including Dogecoin, which often benefits from his endorsements or is negatively impacted by controversies.

As Dogecoin's technical indicators present conflicting signals and macroeconomic uncertainty persists, traders are closely monitoring the situation to determine whether the current increase in price and volume signifies the beginning of renewed momentum or merely a temporary reaction. Read original article on U.Today