- Dogecoin witnessed massive uptick in price after Coinbase’s recent announcement.
- Social volume around the token grew, however, sentiment declined.
Since the beginning of March, Dogecoin [DOGE] has witnessed a surge in volatility and has gone through massive corrections. However, recent developments have given Dogecoin bulls some hope.
High hopes
Coinbase recently revealed its intention to introduce a futures trading service for Dogecoin. This move allows individuals to safeguard against potential fluctuations in the future value of an asset through smart contracts.
The contracts ensure that the buying and selling of assets occur at predetermined prices on specified dates.
To proceed with this initiative, Coinbase has communicated its plans to the US Commodity Futures Trading Commission (CFTC) via written correspondence.
In these letters, the exchange outlines its strategy for launching futures contract products featuring a cash-settlement mechanism.
Coinbase emphasized to the CFTC its strong interest in DOGE, pointing out that the ongoing popularity of Dogecoin and the enthusiastic backing from its community indicate that it has progressed from its meme origins to become a significant aspect of the cryptocurrency ecosystem.
Due to this, the price of DOGE surged by 15.79% in the last 24 hours. If the momentum around this rally continues to grow, the price of DOGE may test the $0.1930 level and could possibly retest the the $0.200 level as well.
If DOGE’s price weakens the $0.200 level, a case could be made for another significant rally, with DOGE prices soaring to heights not seen since 2021.
Moreover, the Chaikin Money Flow (CMF) indicator for DOGE stood at 0.17. A CMF value of 0.17 for Dogecoin suggests that buying pressure has been relatively strong compared to selling pressure recently.
This could indicate bullish sentiment among traders and investors.
Source: Trading View
Trouble on the social front
Along with the surge in price, the total number of DOGE traders had also grown indicating that the surge in price could be attributed to new addresses accumulating DOGE.
Moreover, the social volume around DOGE also spiked, implying that the conversations occurring around DOGE on social media platforms had grown.
Despite the heightened activity on social media platforms and Coinbase’s nod of approval, the weighted sentiment around DOGE remained negative.
This meant that the number of negative comments around DOGE had outnumbered the positive ones. The uptick in negative sentiment around DOGE could hinder DOGE’s positive price movement.
Source: Santiment