Dogecoin Price Could Soar or Correct by 30%: What’s Next After the 10% Surge?

Dogecoin (DOGE) has surged nearly 10% in one day, drawing attention to its rising momentum. The average transaction size has also increased, indicating that larger market players are actively engaging with the meme coin. This surge suggests that bullish momentum may be forming, but the sustainability of the trend remains in question.

Dogecoin Average Transaction Size on the Rise

From October 10 to October 14, Dogecoin’s average transaction size skyrocketed from 55,000 to 244,000. This growth hints at the involvement of institutional investors or whales, which could significantly impact liquidity and price movements. A rising transaction size often signals heightened market interest and increased capital flow.

*DOGE Average Transaction Size. Source| IntoTheBlock*

If Dogecoin maintains an average transaction size above 200,000, it could indicate further market activity. Larger transactions often drive optimism, which attracts traders and fuels price growth. This trend may support continued upward movement, but the longevity of this surge depends on maintaining momentum.

Directional Movement Index Signals a Weak Trend

The Directional Movement Index (DMI) currently shows that Dogecoin is in an uptrend. However, the ADX line, which measures the trend’s strength, stands at 19.57, a weak reading. Typically, an ADX value below 20 suggests that the upward momentum lacks robustness, even with DOGE’s recent gains.

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The D+ line, indicating buying pressure, stands at 30.04, significantly higher than the D- line at 10.70. This imbalance reveals strong buying pressure, but the weak ADX line casts doubt on the strength of the trend. Without stronger trend momentum, Dogecoin’s rally may not last.

Possible 30% Correction Ahead

*DOGE Price Analysis. Source| TradingView*

Dogecoin’s Exponential Moving Average (EMA) lines show a bullish setup, but the gap between the short-term and long-term EMAs remains narrow. This setup signals a weak uptrend, which could quickly reverse if buying pressure fades.

If momentum persists, DOGE could test resistance at $0.138 or $0.143. However, if buying pressure declines, the price may drop to support levels around $0.10 or $0.088. This decline could result in a 30% correction from current levels.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.