- Dogecoin has surpassed Bitcoin and Ethereum in transaction volume.
- Moreover, DOGE’s price has jumped to a 7-day high amid rising trust.
- However, a bearish trend is approaching as DOGE’s momentum weakens.
Dogecoin has again taken the spotlight, shattering previous transaction records and leaving Bitcoin and Ethereum in its digital dust. Riding the tide of a new breakthrough mechanism that facilitates token issuance on the Dogecoin blockchain, the canine-themed cryptocurrency saw its daily transaction volume grow more than tenfold.
With 1.1264 million transactions reported on May 17, Dogecoin demonstrated that its bark is as fierce as its bite, outnumbering even the most prominent participants in the crypto arena, such as Bitcoin and Ethereum.
This activity rush demonstrated the rising trust in the Dogecoin ecosystem and significantly influenced the market. Due to the prevalence of buying pressure, DOGE’s price jumped from its previous low of $0.07274 to a remarkable 7-day high of $0.07531.
Dogecoin Transaction Chart (Source: BitInfoCharts)
Technical Analysis
With a value of -0.06, the Chaikin Money Flow (CMF) motion in the negative area implies that the bullish momentum in DOGE is losing speed, signaling that a bearish trend is on the horizon.
To add to the gloom, the stochastic RSI has fallen below its signal line, signaling downward, with a reading of 76.71. This fall indicates that DOGE may soon undergo a big downturn.
DOGE’s momentum is weakening, with a rate of change rating of 2.34, suggesting that the negative trend may persist. However, if the ROC continues its upward path, positive momentum may resurface, perhaps resulting in a price gain for DOGE.
DOGE/USD chart (source: TradingView)
In conclusion, Dogecoin’s meteoric rise in transaction volume and price highlights its growing influence, but technical indicators suggest a potential bearish trend ahead.
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