Dogecoin (DOGE) Price Could Correct by 30% if Market Loses Steam
2024-10-17

Dogecoin DOGEUSD price is on the rise, surging almost 10% in a single day. Average transaction sizes have also increased, suggesting that larger market participants are becoming more active. This renewed interest could be an early sign of bullish momentum forming.
While technical indicators are showing a positive outlook, the strength of the trend remains uncertain. If momentum holds, DOGE could continue upward, but there are also risks of a possible correction.
DOGE Average Transaction Size Is On The Rise
Dogecoin DOGEUSD has seen a notable increase in its average transaction size over the past few days, rising from 55,000 on October 10 to 244,000 by October 14. This surge indicates growing interest in higher-value transactions involving DOGE, suggesting that larger players might be entering the market.
The significant rise in transaction size is often a signal of increased activity among institutional investors or whales, which can impact liquidity and ultimately drive price movements.
The average transaction size is an important metric because it reflects the overall interest and confidence of market participants. When larger transactions become more frequent, it can signify heightened interest and increased capital flow, which often correlates with price growth.
If DOGE’s average transaction size continues to grow or remains above the 200,000 threshold, it could indicate a further heating up of the market. This surge in large transactions may contribute to stronger bullish momentum, potentially pushing DOGE prices higher as optimism grows and more traders notice the increased activity.
Dogecoin DMI Shows A Bittersweet Signal
DOGE is currently in an uptrend, as indicated by the Directional Movement Index (DMI) chart. The ADX line, which measures trend strength, is currently at 19.57. This value indicates that, although DOGE is moving upwards, the strength of the trend is relatively weak.
Typically, an ADX reading below 20 implies that the current momentum lacks robustness, suggesting that the market’s enthusiasm may not be sufficient to sustain a prolonged rally.
The DMI chart includes the ADX line (yellow), the D+ line (blue), and the D- line (red). The D+ line, which stands at 30.04, indicates positive buying pressure, while the D- line, at 10.70, represents selling pressure. The significant difference between D+ and D- shows that buying pressure is clearly dominant, supporting DOGE’s recent price surge.
However, despite this buying pressure and a nearly 10% price increase in the last 24 hours, the relatively low ADX suggests that the uptrend may not be strong. Without a stronger ADX reading, the current uptrend could lack the necessary momentum to turn into a sustained bullish rally.
DOGE Price Prediction: Can It Go Through a 30% Correction Next?
Dogecoin’s DOGEUSD EMA (Exponential Moving Average) lines are currently in a bullish formation, with short-term EMAs positioned above the long-term EMAs. This alignment is a sign of positive momentum, suggesting that recent price action has been favorable and that the uptrend may continue.
However, the distance between the short-term and long-term EMAs is not substantial yet, indicating that while the trend is currently bullish, it is still relatively weak and could reverse if buying pressure diminishes.
EMA lines are moving averages that give more weight to recent price data, making them more responsive to short-term price movements compared to simple moving averages. Traders often use EMAs to identify potential entry and exit points, with a bullish signal occurring when shorter-term EMAs cross above longer-term EMAs.
If DOGE’s uptrend continues and gains strength, the price could rise further and test resistance levels at $0.138 and $0.143. On the other hand, if buying momentum fades and the trend weakens, the biggest meme coin in the market may face a correction, potentially falling to support levels around $0.10 or even $0.088, representing a possible 30% pullback.