As Bitcoin's (BTC) price fell below the $67,000 support amid the transfer of a huge 2.8 billion BTC by Mt Gox, the crypto market was affected. Similarly, Dogecoin (DOGE) was not left out, with its price dropping even with bullish activity in the last 24 hours. At the time of writing, DOGE was trading at $0.1347, which is 1.60% less than the intraday high.
In the dip, DOGE market capitalization and 24 hours trading volume were reduced by 1.67% and 4.00% to $19,561,263,582 and $1,344,374,514 respectively.
The crypto community has been abuzz for the past few days with expectations of the keynote speech by Donald Trump at the Bitcoin 2024 conference on July 27. There are a number of speculations indicating that Trump is likely to introduce a major Bitcoin reserve strategy for the US if he wins the presidential election this November.
That speculation has raised some bullish sentiments among investors and has added to DOGE's recent performance.
On that note, Trump's past support of the crypto industry brings some hope, and many believe his potential presidency would favor the crypto market. Other recent developments, like the withdrawal of Joe Biden from the presidential race, have also boosted Trump's chances, therefore increasing market optimism.
Dogecoin has made a bullish IH&S in recent technical parlance, that classic signal, of a downtrend coming to an end and a new leg higher beginning. This pattern mostly consists of three troughs that are unlike the others, with the middle one being the lowest.
The current week saw Dogecoin breaking above the IH&S neckline around $0.13, indicating a measured price target closer to $0.175, which would represent a 25% increase from current levels. This most recent dip just proved yet again that the market is very volatile and opens an opportunity for a retest of the neckline resistance to turn it into a support.
Aside from the IH&S pattern, Dogecoin's price chart shows a falling wedge pattern: usually a bullish reversal pattern. These are formed from converging trend lines on lower highs and lower lows, which should suggest an eventual break to the upside or bullish momentum.
A recent breakout from the upper boundary of the falling wedge offers the first hint of an up-trending price. A target highlighted by the pattern indicates an anticipation that the price is heading toward roughly $0.22 should this breakout confirm and sustain bullish momentum.
Meanwhile, the cryptocurrency world has seen a bit of recovery, where Bitcoin was pushing toward $67,000, Ethereum was holding at around $3,400, and Solana was stabilizing just over $180. However, recent numbers on Dogecoin amid all these positive trends underline the volatility of the market
Major whale transactions have set the market dynamics of Dogecoin. An example of a major whale transaction occurred when 93 million Dogecoins, valued at nearly $12,798,210, were sent out from an unknown wallet in one sweep to Binance. In the majority of instances, very big transactions in digital assets have usually been followed by turbulence in value.
Concurrently, according to Coinglass DOGE Derivatives data witnesses a decrease in trading volume of 25.97% to $2.05 billion, certainly reflecting some kind of consolidation or perhaps waning interest in the market. For open interest to decline by 3.61% to $719.30 million indicates that either fewer new positions are being created or some existing positions are getting closed out.