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Dogecoin (DOGE), the king of meme coins, has experienced intense volatility, crashing by a significant 10% in the last 24 hours. The meme coin, on a recovery journey toward the $0.235 level, plunged from a peak of $0.226 to $0.2036.
Is Dogecoin’s spike in volume strategic accumulation?
According to CoinMarketCap data, Dogecoin traders continue to transact despite this price decline, causing a spike in volume. DOGE’s trading volume increased by 39.89% to $2 billion within this time frame.
Investors are treating the drop in price as a potentially needed correction after a brief period of consolidation. This triggered the spike in volume as some accumulate the meme coin in anticipation of a possible breakout in price.
This development could support Dogecoin's crashing price. As more market participants continue to drive up volume, increased demand could help stabilize the price. Strong market participation could signal accumulation, and this sentiment might turn things around for DOGE.
However, the volatility on the broader market calls for caution. If Dogecoin slips further and breaches the $0.20 resistance level, a quick recovery might prove difficult. Such development could plunge DOGE into a deeper correction with $0.18 as support.
Cautious outlook ahead of DOGE’s June historical weakness
As of press time, Dogecoin is exchanging at $0.2046, representing a 10.05% decline. This suggests that the meme coin is staying above the $0.20 support level.
Dogecoin investors must remain cautious as they head into June, given the month's historical records for DOGE. The sixth month of every year has been brutal for Dogecoin, with an average decline of over 7%.
To stand a chance of proving history wrong, the Dogecoin ecosystem needs to increase activity and create buy pressure on DOGE.
If Dogecoin bulls and large holders cannot stabilize the ecosystem, the current 10% price decline might signal what could intensify in June, which is less than 48 hours away.
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Vladislav Sopov
U.Today Editorial Team