In Brief
Dogecoin (DOGE) has jumped 10% in price over the last 24 hours. This surge has caught the attention of many traders. Increased trading activity and indicators like the Average Directional Index (ADX) show that interest in the market is growing. The positioning of DOGE’s Exponential Moving Averages (EMAs) also suggests that the upward trend might continue.
If this momentum holds, DOGE could soon hit key resistance levels, allowing for even more gains. But if the trend reverses, it might need to retest support zones. This is a crucial time to keep an eye on potential changes in the trend.
DOGE Daily Volume Recently Crossed $2 Billion
Recently, DOGE’s daily trading volume spiked to $2.27 billion, the highest since August 5. It has settled down a bit and now stands at $2.12 billion. This surge in volume indicates heightened market activity, drawing the attention of both traders and investors.
This increase can signal shifts in market trends, making it an important metric for assessing buying or selling pressure. Tracking trading volume is essential since it offers insights into the strength behind price movements. The recent rise in DOGE’s volume aligns with its price increase, which went from $0.10 to $0.134 between October 10 and October 18.
Higher trading volumes usually indicate stronger market confidence. In this case, it suggests that the price rise has solid backing. The uptick in activity supports the idea that investors are confident in the current trend, potentially pushing DOGE toward further gains.
Dogecoin’s Current Uptrend Is Strong
DOGE’s ADX currently sits at 34.12, a significant increase from just 13 four days ago. This rise shows that DOGE’s market trend is gaining strength. The ADX measures the intensity of a trend, whether it’s bullish or bearish, without considering its direction.
The sharp increase in DOGE’s ADX indicates a period of strong market conviction. Investor sentiment has shifted notably, creating an environment ripe for further price action. The ADX ranges from 0 to 100. Values below 20 indicate a weak trend, while values above 25 show a strengthening trend. With an ADX of 34, DOGE is firmly in the “strong trend” category.
As DOGE’s price has already surged by 10% in the last 24 hours, the growing ADX adds credibility to the rally. It suggests considerable momentum is supporting the price action. Although the current ADX is strong, it remains below levels seen during previous price spikes, like the 30% surge from September 26 to September 28, when ADX reached nearly 45. This means there’s still room for further strengthening if the uptrend continues.
If the current momentum keeps up, the ADX could rise even higher, validating the strength of the trend and opening the door for more potential gains.
DOGE Price Prediction: Back To $0.17 In October?
The EMA lines for DOGE are currently trending upward. Short-term EMAs are positioned above long-term EMAs, with a significant gap between them. This setup indicates strong and healthy upward momentum.
Exponential Moving Averages (EMAs) are types of moving averages that give more weight to recent price data. They help identify trends, with shorter-term EMAs reacting quickly to price changes while longer-term EMAs move more gradually. When short-term EMAs are above long-term ones, it usually signals an uptrend, indicating that buyers are in control.
If DOGE’s current uptrend continues, it could potentially test the $0.14 level and even challenge the resistance at $0.175—its highest price since May. This would represent a roughly 30% increase from current levels, highlighting the strength of the upward trend indicated by the EMA lines.
The significant distance between short-term and long-term EMAs suggests that bullish momentum has been building steadily. However, if the uptrend falters and reverses, DOGE might revisit key support zones at $0.12 and possibly dip to $0.098, which would mean a potential 26% correction. A narrowing gap between the EMA lines could signal a weakening trend, indicating a shift in market sentiment toward the bearish side.