Dogecoin Is Up Ten Percent Amid A Volatility Cooldown In The Crypto Sector

The crypto market is still plagued by volatility concerns, despite a short-term stability outcome. Most of the top-20 cryptocurrencies are recording moderate losses and slight price gains, but weekly results still sit around 20% down from the past week.

However, the king of meme coins, Dogecoin (DOGE) has seen a wave of bullish sentiment, pushing its price up 10 percent on June 24, making DOGE one of the biggest gainers on the day. Currently, DOGE trades at a little over $0.24 per coin, after falling below $0,22 just 24 hours prior to the price spike.

Nevertheless, the leading memecoin has lost more than a quarter of its value over the past week, which is a trend that is causing concerns across the crypto sector. The latest downward push is caused mainly due to China banning crypto mining activities in the Sichuan province and a wave of regulatory scrutiny from authorities.

But Dogecoin’s price jumped, despite the volatility-induced price slump, mainly due to a recovery in Ethereum prices, which rose above the key $2,000 price point.

Dogecoin’s price action, however, is still not convincing analysts and traders about a future trend reversal, as most of the market is holding back instead of investing.

The uncertainty among retail holders and traders also pushed active Bitcoin addresses to their lowest level in a year. According to crypto analytics platform Santiment, the total number of active Bitcoin addresses dropped below 900,000 in June 2021, which marks the lowest level since July 2020.

“Bitcoin is back at $32.4k after a rebound above a $34.6k high Wednesday. What remains to be seen is an uptick in address activity. On the 30-day rolling scale of daily active address scale, July 13, 2020, was the last time the BTC network was this low,” the analytics company noted.

The bearish action in terms of active addresses comes in conjunction with a significant surge in liquidations across the crypto market. According to analysts, over $89 million worth of investments left Bitcoin and oriented elsewhere.

“Bitcoin’s fear, uncertainty, and doubt (FUD) remain high, as traders are polarized on whether prices can push back below $30k again. For now, though, prices have jumped back on crowd fear. Markets move in the opposite direction of crowd expectation,” Santiment added.

Source: CoinMarketCap

The fear and uncertainty caused the market capitalization of the entire crypto sector to shrink to a current level of $1.37 trillion, which is a value not seen since February 10, 2021. But year-to-date (YTD) data shows that the market capitalization of the sector is still up by 50% - from around $770 billion on January 1 to its current levels.