Dogecoin Stalls as $370K Buy Fails to Boost Market

Dogecoin’s price remains unchanged, despite Neptune Digital Assets purchasing 1 million DOGE in December. The market reaction has been weak, with DOGE recording only a minor increase over the past 24 hours.

Neptune Digital Assets, a publicly traded Canadian crypto firm, announced on Tuesday that it had acquired 1,000,000 DOGE through a strategic derivative trade at an average price of $0.37 per token. However, the announcement failed to generate any real momentum, and trading volume remains low. The limited price increase suggests that speculative short-term trades, rather than strong buying interest, are behind the slight uptick.

Over the past 24 hours, DOGE’s total trading volume has dropped by 50%, reflecting weak demand. When an asset’s price rises while trading volume decreases, it often signals an unsustainable rally. Fewer market participants are driving the price, which raises concerns about a potential reversal.

The Chaikin Money Flow (CMF) indicator also highlights weak buying interest, showing a value below zero at -0.06. CMF measures buying and selling pressure based on price and volume. A negative reading suggests that selling pressure outweighs demand, reinforcing a bearish trend and increasing the likelihood of further declines.

Since January 18, DOGE has been following a downward trend, losing over 30% in value. The price has consistently made lower highs, forming a descending resistance line. As long as DOGE remains below this trend, sellers continue to dominate, and market sentiment stays bearish. Breaking above this line would signal a possible trend shift, while staying below suggests further pressure.

If demand weakens further, DOGE’s price could drop to lower support levels. If buyers fail to defend these levels, the decline could extend even further. However, if demand surges, the bearish outlook could be reversed, and DOGE may target higher price levels in the short term.