Despite several of the top ten coins’ recent corrections, the cryptocurrency market continues to rise, with the majority of assets trading in the green.
DOGE is the lone stock in the red today, down 2.47 percent from yesterday.
DOGE is still trading in a wide channel, with no strong bullish or bearish signals, despite today’s fall. If the currency can’t stay above $0.28 today, it may continue to fall to the level with the biggest liquidity, around $0.245, in order to gain additional energy for growth.
Drastic Dip in Dogecoin Circulation
Dogecoin’s daily circulation has declined dramatically since reaching a three-month high on Oct. 29, according to the Blockchair on-chain analytics service. The key cause could be the price of memecoin.
Large amounts on the market followed high network activity, including a 43 percent price hike. Doge retraced about 12% after reaching a nearly three-month high, and then only dropped down by 5%.
With the markets experiencing more volatility, more traders and investors are transferring their digital assets from exchange wallets to personal wallets and vice versa. With prices stabilising and volatility decreasing, market players are more likely to “leave” their assets on exchanges or wallets without moving them, resulting in a reduction in daily circulation.
The value rise of digital assets is frequently associated with big market swings. Because daily circulation is evaluated in volume rather than number of transactions, the market can expect an uptick in volatility anytime whale-tier wallets move their holdings.
At the time of writing, Dogecoin was trading at $0.27, down 5 percent. On Binance, previous volume numbers have now rebounded to an average of 1.5 billion.
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