The price of Dogecoin (DOGE) is experiencing a notable increase, climbing nearly 10% in just one day. The average transaction sizes have also seen a rise, indicating that larger market players are becoming more engaged. This resurgence of interest could hint at the beginnings of bullish momentum.
Although technical indicators are portraying a favorable outlook, the strength of the trend is still uncertain. Should the momentum persist, DOGE may continue its ascent, yet there remains the potential for a correction.
Increased DOGE Average Transaction Size
Over the recent days, Dogecoin (DOGE) has experienced a significant uptick in its average transaction size, rising from 55,000 on October 10 to 244,000 by October 14. This increase indicates a growing interest in higher-value transactions involving DOGE, implying that larger players could be entering the market.
The notable surge in transaction size often signals elevated activity from institutional investors or whales, potentially impacting liquidity and driving price movements.
Read more: Dogecoin (DOGE) Price Prediction for 2024/2025/2030
The average transaction size is a crucial metric, reflecting the overall interest and confidence of market participants. An increase in larger transactions can indicate heightened interest and capital inflow, often correlating with price increases.
If DOGE’s average transaction size continues to rise or remains above the 200,000 level, it could signify further market heat. This increase in substantial transactions may lead to stronger bullish momentum, potentially driving DOGE prices higher as optimism spreads and more traders take notice of the heightened activity.
Dogecoin DMI Indicates Mixed Signals
Currently, DOGE is on an upward trajectory, as indicated by the Directional Movement Index (DMI) chart. The ADX line, which gauges trend strength, stands at 19.57. This indicates that, while DOGE is moving up, the trend’s strength is relatively weak.
Generally, an ADX reading under 20 suggests that the current momentum lacks robustness, hinting that market enthusiasm may not be enough to sustain an extended rally.
The DMI chart includes the ADX line (yellow), the D+ line (blue), and the D- line (red). The D+ line, currently at 30.04, indicates positive buying pressure, while the D- line, at 10.70, reflects selling pressure. The notable distance between D+ and D- highlights that buying pressure is clearly outweighing selling pressure, supporting DOGE’s recent price surge.
Nevertheless, despite this buying pressure and a nearly 10% price rise in the last 24 hours, the relatively low ADX suggests that the uptrend may be feeble. Without a more robust ADX reading, the current uptrend could lack the necessary momentum to evolve into a sustained bullish rally.
DOGE Price Forecast: Is a 30% Correction Imminent?
Currently, Dogecoin’s (DOGE) EMA (Exponential Moving Average) lines are exhibiting a bullish formation, with short-term EMAs positioned above long-term EMAs. This configuration suggests positive momentum, indicating that the recent price trends have been favorable and that the upward trend may persist.
However, the gap between the short-term and long-term EMAs is not yet significant, indicating that while the trend is bullish, it remains relatively weak and could reverse if buying pressure decreases.
Read more: Dogecoin (DOGE) vs Shiba Inu (SHIB): Understanding the Differences
EMA lines are moving averages that provide greater weight to recent price data, making them more responsive to short-term price fluctuations compared to simple moving averages. Traders often utilize EMAs to identify potential entry and exit points, with a bullish signal occurring when shorter-term EMAs cross above longer-term EMAs.
If DOGE’s uptrend continues and gains strength, prices could increase further and approach resistance levels at $0.138 and $0.143. Conversely, if buying momentum wanes and the trend weakens, the leading meme coin might face a corrective phase, potentially dropping to support levels around $0.10 or even $0.088, suggesting a potential 30% pullback.
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