Dogecoin investors must consider these signs before making an exit

Dogecoin [DOGE]the world’s leading meme coin in terms of market cap, it gained steady upward momentum in late June after hitting a 2022 low of $ 0.050.

Now, after witnessing a phase of low volatility for a few weeks, the price of DOGE has risen on August 14th and 16th. Therefore, allowing it to outperform many other cryptocurrencies and reach $ 0.086.

Within three days, DOGE grew by nearly 20%, giving hope for better days to come.

However, immediately after the increase, the price of DOGE plummeted dramatically. At the time of writing, DOGE was trading at $ 0.06827 with a market cap of $ 9,058,654,268.

Whales at play

While most of the cryptocurrency community was busy talking about the ramp-up episode, the whales carefully planned their release, earning maximum profits.

Santiment data showed that the whale transaction count peaked during DOGE’s price spike, underscoring DOGE’s massive sale at its peak.

Soon after the transaction count peaked, DOGE’s price dropped severely.

Source: Santimento

The metric front

In addition to falling prices, DOGE’s social dominance has also decreased. Thus, indicating less interest on the part of the crypto community in the meme currency.

Furthermore, the drop in prices was also accompanied by a massive drop in DOGE’s active addresses, which fell from 180,000, the highest since April, to nearly 71,000 on August 18.

Source: Messari

Interestingly, the decline also caused DOGE’s volatility to rise by more than 40% in one week, from 0.56, the 6-month low, to 0.91.

Source: Messari

However, a look at DOGE’s four-hour chart suggests that the coin’s performance has improved in recent weeks as it has consistently hit higher lows.

A bullish ascending triangle formed that triggered DOGE’s first price hike on Aug 14 when it broke through its resistance at $ 0.072.

Furthermore, the exponential moving average (EMA) tapes indicated that after a brawl between bears and bulls, the latter have finally taken over the market, leading to a rise in prices.

Source: TradingView

However, a divergence was observed in the DOGE price and Relative Strength Index (RSI) data (purple trend lines) during the coin that hit the twin peaks.

The Chaikin Money Flow (CMF) also showed a similar divergence, indicating a possible collapse.

The indication turned out to be true and the price of DOGE fell, registering a negative growth of 14% in the 24 hours.

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