Dogecoin Floats In Green Territory But There Could Pain Ahead

Dogecoin DOGE/USD traded 1.6% higher at $0.14 in the 24 hours leading up to early Wednesday morning.

Those gains came even as larger peers Bitcoin BTC/USD and Ethereum ETH/USD were mixed at press time as the global cryptocurrency market cap rose 1.05% to $1.9 trillion.

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The Doge Factors 

DOGE was among the most mentioned coins on Twitter, according to Cointrendz data. Bitcoin, Shiba Inu, and Ethereum were the three most mentioned coins.

The 24-hour trading volume for Dogecoin declined 7.6% to $1.29 billion, according to CoinMarketCap.

Coinglass data indicated that $3.7 million worth of DOGE futures were liquidated in the preceding 24 hours as the meme cryptocurrency increased in value.

Inflation Data Drives DOGE, Other Cryptos

On Tuesday, the Labor Department released the inflation figures for March, which indicated that the consumer price index (CPI) rose 8.5% in the period — the highest such spike since 1981. Edward Moya, a senior market analyst with OANDA said that expectations should remain that the “Fed won’t have to aggressively tighten policy and send the U.S. economy into a recession.”

High Taxes Impact DOGE Volumes In India

Data from Indian exchanges WazirX, ZebPay and Giottus indicated that trading volumes shrank at a faster clip post the introduction of the 30% tax on profits earned from digital assets.

What Does The Chart Reveal?

Dogecoin’s chart contains an inside bar pattern which is leaning bearish as the cryptocurrency was trading lower before the pattern was formed. However, according to Benzinga’s Melanie Schaffer, there’s a possibility that DOGE develops a double inside bar on Wednesday to further consolidate the recent volatility. 

Dogecoin On The Web

Dogecoin co-creator Billy Markus shared his take on the surge in inflation on Tuesday. He said while rent and gas were up 50% each, inflation rose 8.5%.

rent: up 50%
gas: up 50%

inflation: “8.5%”

mhmm

— Shibetoshi Nakamoto (@BillyM2k) April 12, 2022

Dogecoin-oriented YouTuber Matt Wallace asked on Twitter why Robinhood Markets Inc HOOD lied about not listing DOGE-rival Shiba Inu (SHIB) on Tuesday.

#Robinhood said they were going to stick with #Dogecoin and not add #SHIB… but they just added it anyway. Why lie?

— Matt Wallace (@MattWallace888) April 12, 2022

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