Dogecoin price rises 6% to $0.181 with increased trading volume and renewed momentum for meme coins

Dogecoin has experienced a sudden bullish resurgence, with its value climbing by about 6% in Monday trading to reach $0.1811. This increase comes after a period of declining prices that had many traders worried about the digital asset’s future. The crypto market is showing a renewed interest in high-risk digital assets, with Dogecoin leading the way among meme coins as traders embrace a risk-on sentiment.

The recent price action indicates that the bearish trend in Dogecoin may be subsiding, potentially paving the way for a sustained rally if key technical resistance levels are breached. The resurgence of Dogecoin has coincided with former President Donald Trump’s statement about using tariff revenue to fund $2,000 stimulus payments for American citizens. This announcement has triggered a speculative buying frenzy across various assets, including cryptocurrencies, as market participants anticipate looser fiscal policies ahead.

The narrative among traders is that increased liquidity in consumers’ hands could flow into digital asset markets, reminiscent of the meme coin mania seen in 2021. The memories of the impressive returns generated by Dogecoin and Shiba Inu in 2021 are resurfacing, leading to a revival of social media buzz and retail interest in these assets.

A significant surge in trading volume for Dogecoin within a 24-hour period, with a 180% increase reaching $649.5 million, indicates genuine conviction behind the price movement. This surge in volume is seen as a positive sign, suggesting potential sustained price movements rather than short-term fluctuations. Trading volume is often considered a leading indicator of price direction, hinting that this rally may have strong underlying support.

The concentration of trading volume during US trading hours suggests that American investors, both retail and institutional, are key drivers behind the renewed interest in Dogecoin. This geographic focus of activity adds credibility to the theory that Trump’s stimulus payment proposal has resonated strongly with US market participants. While Dogecoin has typically been associated with retail traders, recent trading patterns indicate growing institutional involvement in accumulating positions.

On-chain analytics reveal that buyers have established a solid support level just above $0.174, indicating institutional interest in the digital asset. The swift price appreciation from $0.1722 to $0.1811 in a short period suggests substantial capital deployment, likely attributed to institutional players rather than retail investors. Key observations, such as large block trades and the concentration of volume during regular trading hours, further support the notion of institutional participation in Dogecoin.

Overall, the recent resurgence of Dogecoin, fueled by renewed trading volume and institutional interest, marks a potentially significant shift in market dynamics. Traders are closely watching key technical levels to gauge the sustainability of this upward momentum and whether Dogecoin can maintain its bullish trajectory in the competitive cryptocurrency landscape.