A cryptocurrency analyst, Ali Martinez, has flagged potential warning signs in the trading pattern of meme cryptocurrency Dogecoin (CRYPTO: DOGE).
What Happened: In a tweet on Monday, Martinez outlined a concerning trend for Dogecoin, stating, “Dogecoin is experiencing a decrease in transaction volume and whale transaction count, which typically indicates lower trading activity. This could be a sign that fewer people are buying, selling, or transferring DOGE, possibly due to reduced interest or confidence in it!”
#Dogecoin is experiencing a decrease in transaction volume and whale transaction count, which typically indicates lower trading activity. This could be a sign that fewer people are buying, selling, or transferring #DOGE, possibly due to reduced interest or confidence in it! pic.twitter.com/SiKNxx4FhN
— Ali (@ali_charts) February 12, 2024
Last week’s activity for Dogecoin appeared more promising with a short-lived spike in large transactions. Metrics released by IntoTheBlock showed an increase in transactions valued above $100,000 — from 154 to 173.
Simultaneously, the community-focused tracker Doge Whale Alert observed a significant transaction in which an unknown user transferred 100 million DOGE to the Robinhood trading platform, equivalent to $7.84 million at current valuations.
See More: Dogecoin HODLERs Are Beating Shiba Inu With 57% Landing In Profits, IntoTheBlock Data Reveals
Why It Matters: While Martinez shared a cautious viewpoint on Dogecoin, he conveyed a brighter forecast for another cryptocurrency Cardano (CRYPTO: ADA). He said, “Cardano faces a formidable obstacle between $0.54 and $0.56, a zone where nearly 50,000 addresses hold approximately 2 billion ADA. Overcoming this resistance could pave the way for a bullish move toward $0.68!” suggesting a potential uptrend for Cardano should it be able to break through the resistance levels.
#Cardano faces a formidable obstacle between $0.54 and $0.56, a zone where nearly 50,000 addresses hold approximately 2 billion $ADA. Overcoming this resistance could pave the way for a bullish move toward $0.68! pic.twitter.com/SZJuDe5UQg
— Ali (@ali_charts) February 11, 2024
Meanwhile, another crypto analyst on Sunday predicted that when meme cryptocurrency Dogecoin pumps it will set the scene for meme season.
Crypto Tony on…
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