Crypto traders are cautious about Dogecoin's (CRYPTO: DOGE) prospects, citing uncertain price action, as the apex meme coin is down 6% on the day.
What Happened: One trader points to Dogecoin being below the resistance level and suggests waiting for an entry until it flips this level, suggesting to "play it safe, no risk here."
Same as Bitcoin, $DOGE is still below this resistance so if you wait for an entry wait until we flip this level. Play it safe, no risk here. #DOGE pic.twitter.com/0QIoHNhXYY
— Sam Mti (@MTI_Trading) May 7, 2024
Price Action: At the time of writing, DOGE was trading at $0.1472, down 6% over the past 24 hours.
Also Read: Trader Who Made 'Giga Wealth' On Memes Reveals 'Mememillions Playbook,' Still Holds Most Of His DOGE
Why It Matters: IntoTheBlock data shows a 2.8% increase in large transaction volume to $1.85 billion and a 24.8% increase in daily active addresses to 64,750. However, transactions greater than 100,000 have decreased from 496 to 397 over the past seven days. Despite this, total exchange inflows remain high at $63.6 million, up from $21.5 million two days ago.
With Dogecoin experiencing a monthly drop of around 28%, traders should note that meme coin trading is always volatile. Bitcoin's current range between $60,000 and $64,000 will likely have a significant impact on altcoins and meme coins.
What's Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.