Abstract
The large increase in retail activity in Dogecoin [DOGE] marks a phase characterized by high retail participation.
This period, known as "excessive retail traders," historically means that Dogecoin could soon face price declines again, as it did in May 2024, January 2023, and May 2021. This surge in activity is known as FOMO (for fear of missing out), which can lead to significant selling and manipulation to eliminate players who enter the market later.
However, this potential drop could set the stage for a big rally and could even push DOGE to new highs. Such cycles are common in highly volatile meme-driven markets, and emotional trading can lead to rapid price changes.
The current retail frenzy shows a strong interest in Dogecoin, setting the stage for major market movements in the near future.
Number of transactions on all exchanges
Dogecoin also set a new record for total trading volume across all exchanges, hitting an all-time high in November 2024.
The surge in trading activity reflects growing interest in meme cryptocurrencies, surpassing the peak in early 2021 and mid-2023.The surge in trading volume coincided with a period of increased price volatility, indicating increased participation. As the frequency of trading surges, the price of DOGE also shows obvious volatility.
The trend was particularly pronounced in November, when the number of transactions in the spot and futures markets rose sharply, highlighting the active participation of traders around the world.
The landmark dogecoin transaction suggests a renewed enthusiasm in the crypto community, with the potential to attract more attention and investment.Driven by the underlying community support and widespread media coverage, cryptocurrencies continue to attract a diverse audience, leading to a volatile and compelling market performance.
DOGE, the price forecast
The FOMO of DOGE, as retail investors hinted at another decline to attract traders now entering it, could rebound and hit new highs.
DOGE on the four-hour chart highlights the significant price fluctuations and the corresponding trading volume. Note that the chart marks two significant rallies, with DOGE soaring in anticipation of another rally soon.
The first rally rose from about $0. 125 to $0. 175, up 40. 42%. Similarly, the second prominent surge reached $0. 43, indicating another increase of 208. 59%, and is expected to rise another 208. 58% to exceed $1.
These peaks coincided with the RSI (RSI) falling into the "oversold zone", suggesting that traders may have taken advantage of potential buying opportunities.
Each time they fall into the oversold zone, prices rise sharply, indicating strong buying pressure after a big sell-off.
At press time, RSI was located near the oversold area, suggesting another uptrend if the past pattern holds.