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One of the most colorful characters of the crypto markets, Dogecoin (DOGE), has attracted attention with an increase of over 5% in the last 24 hours. However, is this rise truly based on the buzz created by social media influencers dominating the market headlines? Metrics indicate otherwise for Dogecoin.
Dogecoin Price Increases
According to data from the crypto analysis platform LunarCrush, Dogecoin’s price has risen in parallel with an increase in social media activity over the past 24 hours. There has been a significant increase in the number of interactions on social media platforms, which has pushed the price of DOGE upwards. However, the permanence of such short-term increases should be assessed by looking at the market’s fundamental indicators.
According to related data, Dogecoin has recently been one of the meme coins with the highest social interaction. However, according to technical analyses, DOGE’s Aroon indicator suggests that the upward trend is weakening and the price may fall. This indicator tracks the strength of the trend in an asset’s price movements and potential turning points.
What Do the Metrics Say About DOGE?
DOGE’s Chaikin Money Flow (CMF) indicator has recently returned a negative value of -0.04. The CMF measures the flow of money into or out of a particular asset. A negative CMF value indicates an outflow of liquidity and an increase in selling pressure. As in this case, a negative CMF value is often interpreted as a signal to take short-focused positions and is also an indicator of weakness in the market.
The Moving Average Convergence Divergence (MACD) indicator also confirms DOGE’s downward trend. Recent analyses have revealed that the MACD line crossed below the signal line on March 15, indicating the start of a bear cycle in the short term.
Another indicator confirming the downward pressure on DOGE’s price is the Parabolic SAR. This indicator identifies potential trend directions and reversals. Dotted lines above the price are considered a sign of high selling activity. In such cases, investors usually take this as a signal to exit long positions or to initiate short positions.
The technical analysis of DOGE highlights the current weakness and downward trend in the market. However, considering the volatile nature of the crypto market and unexpected price movements, it is likely that DOGE’s movements will be influenced by Bitcoin‘s upward trajectory in general.
