Dogecoin (DOGE), the meme-inspired cryptocurrency, has shown a significant volume gap on the trading charts, according to market analysts.
The digital asset, which started as a joke but has since gained a serious following, displayed a notable discrepancy between trading volumes at different price levels, a phenomenon known as a “volume gap.”
This technical observation has caught the attention of traders and analysts alike, as it could indicate potential price movements for the cryptocurrency.
Understanding volume gap
A volume gap, in the context of asset trading, refers to a range on a price chart where the trading volume is noticeably lower compared to other areas.
$DOGE #Dogecoin That is a volume gap if I have ever seen one. pic.twitter.com/KL8AFNnrEB
— Jake Wujastyk (@Jake__Wujastyk) February 11, 2024
This can often be seen in a volume profile that is a histogram on the Y-axis of a chart that shows the level of trading activity over a specific price range.
In the chart for Dogecoin, the volume gap is prominently displayed as a wide, low-volume area highlighted on the volume profile.
This shows that there was minimal trading activity within that price range, which can sometimes lead to increased volatility as prices move swiftly through these levels due to the lack of historical trading support or resistance.
Current Dogecoin price performance
As for Dogecoin’s current market status, it is trading at $0.08248, with a 24-hour range between $0.08064 and $0.08331.
The market cap currently stands at approximately $11.8 billion, according to CoinGecko data.
The 24-hour trading volume for Dogecoin is reported to be over $311 million, with a circulating supply of over 143 billion DOGE.