Dogecoin Soars 17% To Break $0.21 As Volume Explodes
March 28 2024 - 10:00AM
NEWSBTC
Dogecoin has jumped 17% in the past 24 hours to break past the
$0.21 barrier as on-chain data shows a significant increase in
volume for the memecoin. Dogecoin Beats Market With 17% Rally In
The Last Day Most of the top cryptocurrencies have seen flat
returns in the last 24 hours, but Dogecoin has gone its own way as
the original meme coin has enjoyed a strong rally. Related Reading:
Bitcoin “Liquid Inventory Ratio” Hits All-Time Low, What It Means
The below chart shows what the asset’s performance has looked like
during the last few days: 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 last
24 hours and has cleared the $0.21 level. Among the top 100
cryptocurrencies by market cap, only Bitcoin Cash (BCH) has
registered comparable profits in the same period. DOGE still beats
BCH in the 1-week timeframe, however, as the memecoin has managed
returns of more than 40% in this period, while the Bitcoin
hard-fork has seen 33%. The reason behind these two assets in
particular seeing a strong performance may lie in the fact that
Coinbase plans to add futures products for them starting the 1st of
April. Litecoin (LTC) is also set to see a listing on the same day,
but its performance has been much weaker than the other two. In
terms of market cap, Dogecoin is currently the eighth-largest coin
in the sector, as the table below shows: Looks like the market cap
of the memecoin is just under $31 billion at the moment | Source:
CoinMarketCap From the table, it’s apparent that the gap to USD
Coin (USDC) in seventh isn’t too much right now, so if Dogecoin can
keep up its surge, it’s possible that it may be able to flip the
stablecoin. DOGE Transaction Volume Has Observed A Sharp Increase
Recently Something that would confirm that widespread speculation
around Dogecoin is ripe for a rally currently would be its
Transaction Volume. As a user on X pointed out using data from the
on-chain analytics firm Santiment, DOGE’s Transaction Volume has
shot up recently. The “Transaction Volume” keeps track of the total
amount of tokens (in USD) for a given cryptocurrency that has
observed some movement on the blockchain in the past 24 hours. When
the value of this metric is high, it means that the users are
transacting large amounts on the network right now. Such a trend
implies the trading interest around the asset is high currently. On
the other hand, low values of the indicator can be a sign that the
general interest in the cryptocurrency, both as an asset and a
network, is low at the moment. Related Reading: Bitcoin Coinbase
Premium Returns To Neutral: Buying Push Already Over? Now, here is
a chart that shows the trend in the Dogecoin Transaction Volume
over the past year: The metric seems to have gone up in recent days
| Source: @trader_kamikaze on X As is visible in the chart, the
Dogecoin Transaction Volume has experienced quite a boost recently,
and what has accompanied this rise has been the latest rally. A
rising volume can often be a positive sign for the sustainability
of any rally, as it means that interest in the asset is going up,
and thus, more fuel is potentially coming in. Something to keep in
mind, though, is that selling and buying alike affect this
indicator, so a mass selloff would also register as a spike in the
metric. Thus, while high volumes are usually a requirement for
rallies to continue (as without interest, the run can easily die
down), they alone can’t predict a further rise, as the nature of
this activity can be hard to ascertain. Featured image from
Kanchanara on Unsplash.com, Santiment.net, chart from
TradingView.com
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