A cryptocurrency analyst, Ali Martinez, has flagged potential warning signs in the trading pattern of meme cryptocurrency Dogecoin DOGE/USD.
What Happened: In a tweet on Monday, Martinez outlined a concerning trend for Dogecoin, stating, "Dogecoin is experiencing a decrease in transaction volume and whale transaction count, which typically indicates lower trading activity. This could be a sign that fewer people are buying, selling, or transferring DOGE, possibly due to reduced interest or confidence in it!"
Last week’s activity for Dogecoin appeared more promising with a short-lived spike in large transactions. Metrics released by IntoTheBlock showed an increase in transactions valued above $100,000 — from 154 to 173.
Simultaneously, the community-focused tracker Doge Whale Alert observed a significant transaction in which an unknown user transferred 100 million DOGE to the Robinhood trading platform, equivalent to $7.84 million at current valuations.
See More: Dogecoin HODLERs Are Beating Shiba Inu With 57% Landing In Profits, IntoTheBlock Data Reveals
Why It Matters: While Martinez shared a cautious viewpoint on Dogecoin, he conveyed a brighter forecast for another cryptocurrency Cardano ADA/USD. He said, "Cardano faces a formidable obstacle between $0.54 and $0.56, a zone where nearly 50,000 addresses hold approximately 2 billion ADA. Overcoming this resistance could pave the way for a bullish move toward $0.68!" suggesting a potential uptrend for Cardano should it be able to break through the resistance levels.
Meanwhile, another crypto analyst on Sunday predicted that when meme cryptocurrency Dogecoin pumps it will set the scene for meme season.
Crypto Tony on X said, "When DOGE pump… Set the sights for #Memeseason please."
Price Action: At the time of writing, DOGE was trading at $0.082, up 2.31% in the last 24 hours, according to Benzinga Pro.
Read Next: Here’s How Much You Should Invest In Shiba Inu Today For A $1M Payday If SHIB Hits 1 Cent?
Photo by Dennis Diatel on Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
