Dogecoin Down 7%: What Is Going On?
By Benzinga
Dogecoin’s (CRYPTO: DOGE) spike in new addresses prompted traders to predict an upcoming bull run for the meme coin.
What Happened: Crypto trader Lucky stated that Dogecoin has seen a “decent run” in recent times which is expected to continue. He said, “In my opinion dips are for buying and DOGE will have a spectacular season this cycle.”
Benzinga’s technical analysis shows Dogecoin’s Relative Strength Index (RSI) at 63.8, implying the meme coin is in an uptrend.
After a single-day drop of 7%, crypto trader Kevin stated that Dogecoin is currently back testing the macro falling wedge it broke out of a week ago. He sees this as a bullish back test.
Cautioning traders, he said that if Dogecoin “loses this area then big trouble awaits. We need to hold this zone for this 6-month pattern to not fail.”
Also Read: Dogecoin Up 19%, Shiba Inu Surges 32% In September: What’s Next For The Meme Coin Leaders?
Why It Matters: Crypto chart analyst Ali Martinez pointed out that the Dogecoin network is seeing significant growth, with a 72% increase in new addresses. 19,630 new Doge addresses were created in one day.
IntoTheBlock data shows large transaction volume increased by 52.1% and daily active addresses rose by 12.2%. Transactions greater than $100,000 are up from 189 to 355 in a single day. Exchanges netflows are down by 348.3%.
Coinglass data shows Dogecoin liquidations are on the rise for two days with Sep. 30 long liquidations at $4.7 million, the highest since Sep 6. Tuesday’s long liquidations tally at $3.96 million.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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