Dogecoin: Can a transaction volume of $800 mln fuel DOGE’s price?

Dogecoin’s [DOGE] price has been lagging even as the memecoin sector outperformed the broader crypto market.

Despite a cool-off in bullish momentum, Dogecoin managed to return to the top ten cryptos by market cap with $14.6 billion. This was $4.6 billion more than that of Hyperliquid [HYPE], which was placed at position ten.

Analyzing Dogecoin’s trading activity over the week

As per Delphi Digital, memecoins performed best among all sectors, with Dogecoin only returning 2.66% over the past week. However, the sector did not outperform Bitcoin [BTC] and Ethereum [ETH].

Sector-wise, memecoins recorded 7.79% gains, while modular, decentralized finance (DeFi), AI, and Layer 1s followed with gains of less than 2% for each.

The strength in the memecoin sector was backed by the spike in activity. Additionally, the memecoin was celebrating DOGE Day, which could have influenced a surge in activity.

During this day, the price jumped from $0.095 to $0.100 but got an instant rejection at around $0.102. This increase in transaction volume, along with price action, indicated bulls were responsible for this trading activity.

As per Ali Martinez, DOGE saw its biggest transaction volume spike of the year on the 16th of April, of about $800 million.

However, this activity was not consistent across the whole week, as other days recorded volumes below the $234 million mark. This indicated the memecoin was yet to get a direction bias.

Some users argued that the activity was algorithm-driven, hence why the volume spike did not do much to the price.

DOGE price shows mixed signals

On the charts, Dogecoin has been moving sideways since mid-February. The price was bouncing between the $0.089 and $0.103 levels, indicating stagnation of more than two months.

The huge transaction spike could be a signal to a looming uptrend as traders continue to accumulate DOGE. This aligned with the RSI Divergence signal, which was bullish.

However, the RSI Divergence reading was neutral, at 49.92, indicating cautious sentiment. The Cumulative Volume Delta (CVD) remained in the negative territory, though it had grown from extreme levels of 204 million to around 22 million.

Such indicator readings suggested the signals were mixed with no clear winner at the moment. Surpassing $0.103 would shift the market structure to bullish, while breaking below $0.089 would extend the bearish outlook.

Final Summary

• Dogecoin’s transaction volume spiked to nearly $800 million in the past week. 
• DOGE had been trading in a sideways range for more than two months.