Dogecoin (Doge), Canadian -based crypto company Neptune Digital Assets announced that it had purchased 1 million Dogge, but did not give the expected reaction in terms of price. Despite the $ 370,000 institutional purchase, the price of Dogecoin only increased by 1 %, and the investors were waiting for a strong upward movement, while a significant decrease in the transaction volume was a significant decrease.
Dogecoin cannot find the necessary power for rise
Neptune Digital Assets announced on December 27th that he had purchased 1 million doge. According to the company’s statement, this purchase was made on derivative transactions at an average price of $ 0.37. However, this news did not create the expected effect on the price of Dogecoin.
Dge is currently trading at $ 0.26 and has increased only 1 %in the last 24 hours. In the same period, the transaction volume decreased by 50 %and decreased to 3.37 billion dollars. Despite the increase in the price, the decrease in the transaction volume shows that the market demand is weak and that the rise may not be sustainable.
Market data show sales pressure
The Chaikin Money Flow (CMF) indicator for Doge also confirms that the demand on the market is weak. The CMF value is currently at -0.06 and below zero.
The CMF indicator measures the purchase and sale pressure by analyzing the relationship between price and transaction volume. Negative values indicate that sellers dominate the market and that the rise remains weak. The fact that the CMF of Doge’s CMF is below zero is considered a sign that the price may fall further.
Critical levels for the price price
Dge is traded under a falling trend line since January 18, and a decrease in a 33 %decrease in value. According to technical analysis, if this decrease trend continues, the Dogge price may decrease to $ 0.24. If this level of support is broken, there may be a harsh decline to the level of $ 0.19.
On the other hand, if there is a sudden increase in the demand for Dog, a rise movement may be possible towards $ 0.32. However, the fact that the price cannot exhibit a permanent movement on the current falling trend line shows that sales pressure continues.
