The price of Dogecoin (DOGE) is on the rise, soaring nearly 10% in one day. Average trade size has also increased, suggesting that large market participants are becoming more active. This renewed interest could be an early sign of bullish momentum forming.
Although technical indicators point to a positive outlook, the strength of the trend remains uncertain. If momentum holds, DOGE could continue to rise, but there is also the risk of a possible correction.
DOGE average transaction size is increasing
The average trade size for Dogecoin (DOGE) has increased noticeably over the past few days, increasing from 55,000 on October 10th to 244,000 by October 14th. This spike indicates increased interest in high-value deals involving DOGE and suggests that larger players may initiate deals. will enter the market.
Significant increases in trade size often indicate increased activity from institutional investors or whales, which can impact liquidity and ultimately cause price fluctuations.
Read more: Dogecoin (DOGE) Price Prediction 2024/2025/2030
Average transaction size for DOGE. Source: Into the Block
Average trade size is an important indicator because it reflects the overall interest and confidence of market participants. Larger trades becoming more frequent means increased interest and capital flows, which often correlates with higher prices.
If DOGE’s average trade size continues to grow or remains above the 200,000 threshold, it could indicate further heating of the market. This surge in large trades could contribute to the strength of bullish momentum, potentially pushing DOGE prices higher as optimism spreads and more traders notice the increase in activity.
Dogecoin DMI shows bittersweet signals
As the Directional Movement Index (DMI) chart shows, DOGE is currently trending upward. The ADX line, which measures trend strength, is currently at 19.57. This value indicates that although DOGE is rising, the trend strength is relatively weak.
Typically, an ADX reading below 20 means the current momentum lacks strength, suggesting that market enthusiasm may not be enough to sustain a long-term rally. I am.
Doge DMI. Source: TradingView.
The DMI chart includes the ADX line (yellow), D+ line (blue), and D- line (red). The D+ line at 30.04 indicates positive buying pressure and the D- line at 10.70 indicates selling pressure. The large difference between D+ and D- indicates that buying pressure is clearly prevailing, supporting DOGE’s recent price rally.
However, despite this buying pressure and the nearly 10% price increase over the past 24 hours, the relatively low ADX suggests that the uptrend may not be as strong. Unless ADX numbers become stronger, the current uptrend may lack the momentum needed to turn into a sustained bullish rally.
DOGE Price Prediction: Could a 30% correction be next?
Dogecoin (DOGE)’s EMA (exponential moving average) line is currently in a bullish formation, with the short-term EMA sitting above the long-term EMA. This coincidence is a sign of positive momentum and suggests that recent price action has been positive and the uptrend is likely to continue.
However, the distance between the short-term and long-term EMAs is still not that large, indicating that although the trend is currently bullish, it is still relatively weak and could reverse if buying pressure subsides.
Read more: Dogecoin (DOGE) and Shiba Inu (SHIB): What’s the difference?
DOGE EMA lines and support and resistance. Source: TradingView
EMA lines are moving averages that give more weight to recent price data, making them more sensitive to short-term price movements compared to simple moving averages. Traders often use EMAs to identify potential entry and exit points, and a bullish signal occurs when the short-term EMA breaks above the long-term EMA.
If DOGE’s uptrend continues and gains momentum, the price could move higher and test the $0.138 and $0.143 resistance levels. On the other hand, if the buying momentum wanes and the trend weakens, the market’s largest meme coin could face a correction and could fall to support levels near $0.10 or even $0.088, which means a 30% chance of decline.
Disclaimer
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