DOGE Futures Trading Volume Decline

• DOGE’s total futures trading volume has dropped from $58.2 billion in November to just $992 million.
• Dogecoin’s network activity significantly declined despite bullish signals from DOGE’s price action.

The Dogecoin (DOGE) futures market has seen a contraction in trading volume over the past few months, plummeting from a high of $58.2 billion in November to a modest $992 million. This decline confirms a significant reduction in market speculation.

Starting in mid-November, the volume peaked impressively, coinciding with a price of $0.308, suggesting a frenzy of trading activity. However, subsequent weeks have shown a gradual drop in volumes, indicating cooling investor interest.

By December and into the new year, daily futures volumes have consistently hovered below $5 billion, solidifying the decrease from previous highs. This downtrend may imply diminishing confidence or interest in DOGE, potentially due to broader market conditions or declining speculative returns.

If this trend continues, Dogecoin could see further price declines. Conversely, a resurgence in volume might indicate renewed interest and bolster prices, signaling a recovery.

DOGE Network Activity Decline and Price Outlook

As trading volume dropped, so did the creation of new addresses, which fell from a peak of 1.29 million new addresses in November to a mere 30,815 recently, as noted by Ali on X. This shift indicates a significant reduction in network activity.

In November, the spike in new address creations coincided with higher DOGE prices. The steep decline in new addresses aligns with the drop in the price of DOGE. Following these declines, another price drop is expected, though a potential turning point for Dogecoin has emerged; the TD Sequential indicator has flashed a buy signal.

This signal implies that the current downtrend could be concluding, possibly setting the stage for a rebound, with DOGE stabilizing around $0.21267. This stabilization, along with the indicator signal, suggests that buyers may be regaining control, potentially driving prices up if bullish momentum materializes.

Historically, similar signals have often led to price increases, particularly in supportive market sentiment. However, if the market fails to sustain this signal, DOGE could continue its downward trend. Maintaining support above $0.21267 and breaking out from current levels could lead to higher resistances and previous price highs. Conversely, failing to hold this support might result in further declines, potentially dropping below recent lows and testing lower support boundaries.