Dogecoin (DOGE) experienced a significant price surge of over 10% recently, but the upward trend was short-lived as the meme cryptocurrency soon underwent a price correction, nullifying its weekly gains. Additionally, one of the blockchain’s fundamental metrics saw a rapid increase.
Elon Musk’s recent opening of an official Payments account at ‘X’ sparked excitement within the community, contributing to DOGE’s price increase. However, experts had previously suggested that the hype surrounding XPayments might not be sufficient to sustain Dogecoin’s price rise. As the meme token’s price declined, this notion gained strength.
According to 21milyon.com, DOGE saw a decline of about 4% in the last 24 hours alone. While its price trend is downward, one of its key metrics has remained high for several months. IntoTheBlock highlighted in a tweet how Dogecoin’s transaction count remained high compared to other leading cryptocurrencies like Shiba Inu (SHIB). Analysts’ studies on Dogecoin’s metrics indicated that the high transaction count might not be enough to compensate for the token’s losses. DOGE’s social volume remained high over the past week due to high price volatility.
The trend of decreasing sentiment since January 22 suggests an increasing downtrend. Dogecoin’s liquidation heat map reveals critical support around $0.079, indicating a potential further drop before any rise. If the cryptocurrency doesn’t test this support zone, investors might witness further price declines.
Conversely, in a more optimistic scenario, if DOGE’s price ascends, it could encounter strong resistance near $0.09. Bollinger Bands indicate DOGE is in a less volatile region, suggesting the possibility of reaching the support level and potentially initiating another rise from there.