Dogecoin’s price has increased by 21.21 percent in the last day. In fact, at the time of writing, its weekly gains were slightly lower (20.42 percent) than its daily gains. The ‘DOGE to $1′ debate has resurfaced in the midst of the recent price increase, and the loyal community appears to be quite excited at the moment.
Are market participants making purchases?
The buy-sell actions usually indicate whether or not a particular price trend can continue in the same direction. Surprisingly, at the time of writing, the total number of sell orders had surpassed the total number of buy orders. This essentially means that market participants are booking profits and cashing out at this point.
The buy-sell spread has widened over the last six hours, as shown in the attached chart. At the time of writing, it had a negative value of 145.26 million DOGE. Buyers must now come to the rescue if DOGE’s price is to rise organically. However, based on how the trades on each side have played out, it can be argued that the alt’s price will not be able to sustain its rally.
A similar pattern was seen on the market depth chart as well. The number of asks/sell orders appeared to outnumber the number of bids/buy orders. When the open sell orders outnumber the open buy orders, the price of DOGE has tended to fall.
The current social trend
When the DOGE community-generated buzz on social media, the alt’s price reacted favorably. However, the number of mentions (on a daily basis) has recently been fluctuating between $2k and $4k. Notably, during the April-May period, when the alt’s price was at its $0.6 ATH, this metric’s reading fluctuated between 50k and 55k. As a result, the community must become more vocal on social media in order to sustain the price increase.
Examine the Situation
The number of traders has recently increased from 278.2k to 280.65k. As a result, the recent price increase could be attributed to their actions. Nonetheless, given the rate at which other market participants are exiting DOGE’s arena, it can be concluded that the alt will be unable to sustain its rally in the coming days. In retrospect, the $1 dream appears to be quite unrealistic at the moment.