In recent days, Dogecoin (DOGE) has experienced a whirlwind of activity. Not only did DOGE surpass Bitcoin and Ethereum in terms of transaction count, but its daily transactions skyrocketed by a staggering 8220% during May. However, despite these achievements, there are signs of mixed investor sentiment as some addresses have been selling their holdings. This article delves into the details of DOGE’s recent developments and examines the implications for its price and market outlook.
The surge in DOGE’s transaction count on May 29 marked a significant milestone for the memecoin. It surpassed both Bitcoin and Ethereum, highlighting its growing popularity and usability. Moreover, DOGE’s daily transactions witnessed an unprecedented 8220% increase throughout May, soaring from 25,000 to 2.08 million by May 27, according to data from IntoTheBlock. These statistics emphasize the growing demand and usage of Dogecoin in real-world transactions.
However, not all indicators paint a bullish picture for DOGE. Data from Santiment revealed that addresses holding 10,000 to 100,000 DOGE experienced a decline in their holdings. Similarly, addresses holding 10 to 100 DOGE were also observed to be selling their holdings, along with a slight decrease in holdings for addresses holding 100-1000 coins. On the other hand, addresses with 1,000 to 10,000 DOGE showed significant accumulation, indicating a more positive sentiment among larger holders.
Despite these fluctuations, the sentiment surrounding DOGE has recently turned negative. As of May 31, DOGE’s weighted sentiment stood at -0.299, suggesting a lack of positive outlook among investors, despite its transaction milestones. Additionally, DOGE’s trading volume witnessed a slight rise, although it remains far below the highs seen in April, indicating lower overall investor activity.
At the time of writing, DOGE’s price was in the red, trading at $0.0714. The Relative Strength Index (RSI) indicated a loss of buying momentum, approaching the oversold region, with an RSI of 40.77. The Moving Average Convergence Divergence (MACD) hinted at a potential bearish crossover if selling pressure intensifies. Although the MACD line moved above the signal line, the slight upward movement of the signal line indicated the possibility of a bearish reversal.
Furthermore, the Money Flow Index (MFI) reached 43.89, moving toward the overbought region, suggesting caution among investors. Despite a positive seven-day performance, DOGE’s 24-hour performance showed a decline of 1.18%, as reported by CoinMarketCap.
Dogecoin’s recent surge in transactions and its growing popularity demonstrate its increasing adoption. However, mixed investor sentiment, declining addresses, and challenges in price performance suggest caution and uncertainty in the near term.