Dogecoin Soars 17% To Break $0.21 As Volume Explodes

Dogecoin has risen 17% in the past 24 hours, breaking through the $0.21 barrier as on-chain data shows a significant increase in meme coin volume.

Dogecoin outperforms the market with a 17% rise on the previous day

While most of the top cryptocurrencies have posted flat returns over the past 24 hours, Dogecoin is on its own path as the original meme coin has seen strong gains.

The graph below shows the performance of the asset over the past few days.

dogecoin price chart

The price of the coin appears to have sharply soared over the past day | Source: DOGEUSD on TradingView

In this latest rally, Dogecoin has surged more than 17% in the past 24 hours, topping the $0.21 level. Among the top 100 cryptocurrencies by market capitalization, only Bitcoin Cash (BCH) recorded comparable gains over the same period.

However, DOGE still outperforms BCH over a one-week period, as Memecoin achieved returns of over 40% over this period and Bitcoin hard fork recorded 33%.

The reason these two assets are performing particularly well could be due to the fact that Coinbase plans to add futures products to these two assets starting April 1st. Litecoin (LTC) is also scheduled to be listed on the same day, but its performance has been much weaker than the other two.

As the table below shows, in terms of market capitalization, Dogecoin is currently the 8th largest coin in the space.

Dogecoin market capitalization

Looks like the market cap of the memecoin is just under $31 billion at the moment | Source: CoinMarketCap

Looking at the table, it is clear that the gap with USD Coin (USDC), which is currently in 7th place, is not that big, so if Dogecoin can maintain its rapid rise, it may be able to overturn the stablecoin market.

DOGE trading volume has increased rapidly recently

What confirms the widespread speculation surrounding Dogecoin is that it is now ripe for a rally is its trading volume.as user on X, using data from on-chain analytics firm Santiment, noted that DOGE’s transaction volume has recently surged.

“Transaction Volume” tracks the total amount of tokens (in USD) of a particular cryptocurrency that have seen some movement on the blockchain in the past 24 hours.

A high value for this metric means that users are currently making a large number of transactions on the network. Such a trend means there is currently high trading interest in the asset.

On the other hand, a low value of the indicator may indicate a lack of general interest in cryptocurrencies, both as an asset and as a network, at the moment.

Here is a graph showing the trend of Dogecoin trading volume over the past year.

Dogecoin trading volume

The metric seems to have gone up in recent days | Source: @trader_kamikaze on X

As seen in the chart, Dogecoin’s trading volume has increased considerably recently, and this increase has been accompanied by a recent rally.

Increasing volume can often be a positive sign for the sustainability of a rally, as it means there is more interest in the asset and more fuel is likely to flow in.

However, one thing to remember is that sales and purchases affect this indicator in the same way, so large sales will also be recorded as a spike in the indicator. Therefore, while a large number of trades is usually required to continue a rally (as trades can easily fade if there is no interest), it is difficult to ascertain the nature of this activity, so it is not enough on its own. Further increases cannot be predicted.

Featured image of Kanchanara on Unsplash.com, Santiment.net, Charts on TradingView.com

Related Article

0 Comments

Leave a Comment