Dogecoin’s price action remains muffled after the announcement of the Canadian crypto company Neptune Digital Assets that in December it acquired 1 million dog.
Despite the news, the market reaction was dim, and Doge records only a small increase of 1% over the past 24 hours.
Dogecoin tries to get traction with all his might
In the updated update on Tuesday, the publicly trading Canadian crypto, the Neptune Digital Assets, announced that on December 27 she acquired 1,000,000 DOGE. The digital assets company confirmed that the purchase was made through a strategic derivative of trade at an average price of $ 0.37 for token.
Nevertheless, the announcement could not apply a significant impulse on the market. DOGE is traded for $ 0.26 during print, noting a small rally of 1% over the past 24 hours. During the same period, the volume of trade remains low, which indicates that the rally price is due to short -term speculative transactions, and not strong pressure from the purchase.
Over the past 24 hours, the volume of trading in DogE has amounted to $ 3.37 billion. USA, falling 50% during this period.
When the price of the asset increases with a decrease in the volume of trading, this involves weak pressure on the purchase. Less participants increase the price, which indicates the lack of strong demand for the memes of the memes, which makes the rally unstable and increases the risk of change.
In addition, the DOGE’s Chaikin (CMF) cash flow reflects the poor demand for a leading memony among market participants. At the time of writing, it is below the zero line by -0.06.
The CMF indicator measures the pressure of the purchase and sale pressure by analyzing prices and volume for a certain period. When its cost is below zero, the pressure on the sale outweighs the pressure on the purchase, offering a bear’s trend and the potential of further deficiency for the asset.
DOGE price forecast: Bear
Since January 18, Doge exchanged below the line of descending trend, and its cost fell by 33%. This template is formed when the price of the asset constantly reduces the maximum over time, connecting these points to create a resistance line down.
When the assets are traded below this trend line, sellers remain under control, and the general market mood of the bear. The gap above the trend line signals a potential change in the trend, but remaining below, this suggests that the pressure continues down.
If demand is even more weakening, and the reducing pressure on DOGE is strengthened, its price can fall to $ 0.24. If the bulls cannot protect this level, the price of the coin can fall further to $ 0.19.
On the other hand, the revival of Dog’s demand will lose this bear prospects. In this script, the price of a coin can rise to $ 0.32.
