Dogecoin (DOGE), widely known as the king of meme coins, saw its price tumble by 10% in the past 24 hours. The popular cryptocurrency attempted to recover toward the $0.235 level but instead fell from a high of $0.226 to a low of $0.2036.
Despite the drop, trading activity around DOGE surged. According to CoinMarketCap, Dogecoin’s 24-hour trading volume jumped by 39.89%, reaching $2 billion. This spike in volume reflects strong market interest, even during bearish conditions.
Investors Respond to Price Dip With Optimism
Traders appear to be treating this price decline as a healthy correction following a period of consolidation. Many investors have begun accumulating DOGE, anticipating a possible rebound. Increased trading volume, especially during a downturn, often signals growing interest and potential accumulation.
Source: CoinMarketCap
If this buying pressure continues, it could support the current price levels and potentially fuel a short-term recovery. However, market participants must exercise caution. Broader crypto market volatility continues to weigh on prices. If Dogecoin slips below the key $0.20 support level, recovery efforts could face significant resistance.
Related article: Dogecoin Gains 1.37% in 24 Hours: What’s Fueling the Surge?
As of the latest data, Dogecoin is trading at $0.2046, reflecting a 10.05% daily decline. Although DOGE remains above the $0.20 support level, a breach could lead to further downside, possibly pushing the coin toward $0.18.
June Could Pose More Challenges for DOGE
Looking ahead, investors must remain alert. Historically, June has been a challenging month for Dogecoin. On average, the meme coin records a 7% drop during this period. With June just hours away, the market sentiment remains cautious.
Related article: Dogecoin Eyes Recovery as Market Sentiment Shifts
To defy historical patterns, the Dogecoin ecosystem must increase its on-chain activity and build sustained buying pressure.
If bulls and large holders fail to act, this recent decline could mark the beginning of a broader correction throughout the coming month.
