Dogecoin Price Dips 18%, But On-Chain Data Signals Bullish Trend

Dogecoin (DOGE) fell 18% from its recent high, but on-chain data suggests the meme coin’s bullish trend is far from over.

Santiment, a blockchain analytics firm, has highlighted a seven-month high in network activity and a four-month high in whale transactions, indicating the potential for further price rise. Retail investors have since been taking advantage of the meme coin’s price gains in recent days.

According to the data from CoinMarketCap, Dogecoin has risen 14.52% in the past 30 days and is up a modest 0.5% in the past week. However, in the past 24 hours, the DOGE token has dipped 8.14% and is trading at $0.1091 at the time of publication. Meanwhile, the cryptocurrency is ranked 8th in the market with a capitalization of $15.9 billion.

Read also: Dogecoin (DOGE) Price Prediction 2024-2030: Will DOGE Price Hit $1 Soon?

Dogecoin Price Trajectory to Turn Bullish?

The Dogecoin price action has dropped to the lower region of the Bollinger Bands which suggests that the bears have regained control on the cryptocurrency and lower prices are possible if selling pressure increases.

It is important to note that DOGE tried to break out of the upper end of the Bollinger Bands but failed to do so due to a lack of buying volume.

The Relative Strength Index (RSI) for the Dogecoin price trajectory reads 49.54 which suggests that the bears and the bulls are evenly matched and the gradient of the line suggests that slightly higher prices might be seen soon.

The meme coin was overbought for a short time period and is currently undergoing a correction phase.