Why Is Dogecoin Trading Lower On Monday Morning?

Dogecoin DOGE/USD was trading lower Monday morning following an overnight spike that propelled it beyond $0.23.

What happened: The world's largest meme coin by market capitalization experienced a volatile day of trading, with volumes more than doubling to $2.84 billion in the last 24 hours.

DOGE broke past $0.23 twice on Sunday but was met with heavy resistance each time, leading to a U-turn. As of this writing, the cryptocurrency has retraced 8.7% from its intraday high and more than 3% in the last 24 hours.

DOGE followed in Bitcoin's BTC/USD footsteps, which rallied sharply Sunday night and tapped $107,000 for the first time in nearly four months.

Cryptocurrency trader and analyst Chandler predicted DOGE to "absolutely explode" when BTC hits a new high and holds above $110,000.

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Meanwhile, nearly 80% of derivatives traders on Binance with open DOGE positions were leveraged long, according to Coinglass, indicating a bullish outlook for the memecoin.

The Bull Bear Power indicator, which measures the strength of buyers and sellers, flashed a "Buy" signal for DOGE, according to TradingView. However, the Momentum indicator, which compares the short-term price and long-term price, indicated “Sell.”

Price Action: At the time of writing, DOGE was exchanging hands at $0.2164, down 3.31% in the last 24 hours, according to data from Benzinga Pro. Year-to-date, the coin has dived 31%.

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