Dogecoin (DOGE) has experienced an 18% drop in price since reaching its peak on Saturday, but on-chain data suggests that the meme coin’s bullish trend is far from over. Santiment, a blockchain analytics firm, has reported a seven-month high in network activity and a four-month high in whale transactions, indicating the potential for further price increases. Retail investors have been capitalizing on the recent price gains of the meme coin.
According to data from CoinMarketCap, Dogecoin has seen a 14.52% increase in the past 30 days and a modest 0.5% rise in the past week. However, in the last 24 hours, the DOGE token has dropped by 8.14% and is currently trading at $0.1091. With a market capitalization of $15.9 billion, Dogecoin is ranked 8th in the cryptocurrency market.
The Dogecoin price action has fallen to the lower region of the Bollinger Bands, indicating that bears have regained control of the cryptocurrency and lower prices may be possible if selling pressure continues to increase. Although DOGE attempted to break out of the upper end of the Bollinger Bands, the lack of buying volume prevented it from doing so.
The Relative Strength Index (RSI) for Dogecoin’s price trajectory is currently at 49.54, suggesting that bears and bulls are evenly matched. The gradient of the RSI line indicates that slightly higher prices could be on the horizon. The meme coin was briefly overbought and is now undergoing a correction phase.
In conclusion, despite the recent price drop, on-chain data and technical indicators suggest that Dogecoin’s bullish trend may continue in the near future. Retail investors and traders should proceed with caution and closely monitor market developments.