Dogecoin Struggles to Gain Traction Despite Neptune Digital Assets' 1M DOGE Purchase

Dogecoin's price action has remained muted following Canadian crypto company Neptune Digital Assets' announcement that it had purchased 1 million DOGE in December.

Canadian crypto company Neptune Digital Assets has announced that it purchased 1 million Dogecoin (DOGE) in December as part of a digital assets strategy.

The company, which is publicly traded, disclosed the purchase in an update on Tuesday. It stated that the DOGE was acquired through a strategic derivative trade at an average price of $0.37 per token.

However, the announcement did not appear to have a major impact on the market. As of press time, DOGE was trading at $0.26, up only 1% over the past 24 hours.

During the same period, trading volumes for the meme coin were also observed to be low. According to data, DOGE's trading volume reached $3.37 billion in the past 24 hours, marking a 50% drop during that period.

When an asset's price increases while trading volume decreases, it can indicate weak buying pressure. This scenario arises when fewer participants are driving the price up, which suggests a lack of strong demand for the asset and makes the rally unsustainable, increasing the risk of a price reversal.

Moreover, DOGE's Chaikin Money Flow (CMF) at the time of this writing further highlights the poor demand for the meme coin among market participants. The CMF is an indicator that measures the strength of buying and selling pressure by considering an asset's price and volume over a specific period.

When the CMF value is below zero, it indicates that selling pressure is stronger than buying pressure, suggesting a bearish trend and potential further downside for the asset.

Dogecoin Price Prediction: Bearish Trend Line Caps DOGE as Demand Wanes

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