Crypto Analyst Warns Of Sluggish Dogecoin Activity 'Due To Reduced Interest,' Eyes Cardano For Potential Rally

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!"

#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! pic.twitter.com/SiKNxx4FhN

— Ali (@ali_charts) February 12, 2024

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.

#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! pic.twitter.com/SZJuDe5UQg

— Ali (@ali_charts) February 11, 2024

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." 

$DOGE / $USD – Update

When DOGE pump .. Set the sights for #Memeseason please pic.twitter.com/HF4sy9PVnL

— Crypto Tony (@CryptoTony__) February 11, 2024

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