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DOGE Price Unfazed by Neptune's Million-DOGE Buy

DOGE Price Unfazed by Neptune's Million-DOGE Buy

Cryptocurrency Market Analysis

DOGE Price Unfazed by Neptune's Million-DOGE Buy

Canadian crypto firm Neptune Digital Assets announced a December purchase of 1 million DOGE. However, the market reacted mildly, with DOGE showing only a slight 1% increase in the past 24 hours. This lackluster response raises questions about the current market sentiment surrounding Dogecoin.

Dogecoin Struggles to Gain Traction

Neptune's announcement, detailed in a recent update, revealed the purchase was made via a strategic derivative trade at an average price of $0.37 per token. Despite this, DOGE is trading at $0.26 at the time of writing.

The subdued price action is coupled with low trading volume, suggesting short-term speculation rather than sustained buying pressure. 24-hour trading volume dropped 50% to $3.37 billion, indicating weak demand.

DOGE Price and Trading Volume
DOGE Price and Trading Volume. Source: Santiment

The combination of rising price with declining volume signals weak buying pressure. This lack of strong demand makes the rally unsustainable, increasing the risk of a price reversal.

Furthermore, the Chaikin Money Flow (CMF) indicator currently sits at -0.06, below zero, reinforcing the weak demand.

DOGE CMF
DOGE CMF. Source: TradingView

The CMF, which analyzes price and volume to gauge buying/selling pressure, indicates that selling pressure outweighs buying pressure, suggesting a bearish trend.

DOGE Price Prediction: Bearish Outlook Prevails

Since January 18, DOGE has traded below a descending trend line, experiencing a 33% price drop. This bearish pattern suggests sellers maintain control.

A break above this trend line would signal a potential reversal; however, continued trading below it suggests further downward pressure. Potential price targets include $0.24 and $0.19 if selling pressure intensifies. Conversely, increased demand could push DOGE towards $0.32.

DOGE Price Analysis
DOGE Price Analysis. Source: TradingView

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Market conditions are subject to change. Conduct your own research before making any investment decisions.

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