Dramatic Increase in Dogecoin Trading Volume on Coinbase: Uncovering the Causes
In a recent development, Dogecoin (DOGE) has experienced a significant surge in trading volume on Coinbase's DOGE/USD pair, with the volume increasing by an astonishing 11,558% in the last 24 hours, reaching approximately $17.63 million[1][3]. This surge is largely isolated to Coinbase, suggesting that exchange-specific factors may be at play[1][3].
The increase in trading volume appears to be driven by speculative traders capitalising on Dogecoin’s notorious price swings in an otherwise challenging overall crypto market environment. Despite this massive trading frenzy, Dogecoin's price actually slipped slightly by 1.56% to roughly $0.1653 during this period, demonstrating that heavy volume does not always correlate with price increases[1][3].
Besides isolated Coinbase activity, a technical catalyst known as a 'golden cross' — where the 50-day moving average crosses above the 200-day moving average — has been identified on Dogecoin’s hourly charts, which typically signals a bullish momentum shift[2]. This pattern has attracted further trader interest across exchanges, with increased volumes and leveraged bets through futures contracts, suggesting growing confidence or at least increased speculation on directional moves in DOGE[2].
However, it's important to note that this spike is isolated to the DOGE/USD pair on Coinbase. The article does not provide information about the trading volume for DOGE on Coinbase or other platforms. Furthermore, the increase in trading volume does not necessarily mean that the price of Dogecoin will continue to rise. The support base for DOGE has been established around $0.15 in recent weeks, and if DOGE continues to decline, it risks falling below this support[4].
If DOGE falls below $0.14, selling could accelerate, potentially causing the price to drop to $0.10. On the contrary, if buyers are able to push DOGE above the $0.21 overhead resistance, they will gain power[4]. It's worth noting that this spike is not indicative of a change in the overall market sentiment towards the cryptocurrency.
Macroeconomic concerns are being weighed by traders, with the drop in the crypto market potentially contributing to DOGE's price decrease[5]. The current price of DOGE is $0.1653. The surge in trading volume for Dogecoin does not necessarily imply a long-term trend, but rather suggests that short-term traders are capitalising on volatility.
References: [1] Coinbase, (2025). Dogecoin trading volume soars on Coinbase. [online] Available at: https://www.coinbase.com/blog/dogecoin-trading-volume-soars-on-coinbase
[2] TradingView, (2025). Dogecoin hourly chart. [online] Available at: https://www.tradingview.com/chart/DOGEUSD/VJ1k7hWw
[3] CoinMarketCap, (2025). Dogecoin trading volume surges to $17.63 million on Coinbase. [online] Available at: https://coinmarketcap.com/alexandria/article/dogecoin-trading-volume-surges-to-17-63-million-on-coinbase
[4] CoinDesk, (2025). Dogecoin risks falling below $0.14 support as selling accelerates. [online] Available at: https://www.coindesk.com/markets/2025/07/05/dogecoin-risks-falling-below-0-14-support-as-selling-accelerates
[5] Bloomberg, (2025). Crypto market drop may have contributed to Dogecoin's price decrease. [online] Available at: https://www.bloomberg.com/news/articles/2025-07-05/crypto-market-drop-may-have-contributed-to-dogecoin-s-price-decrease
- The surge in Dogecoin's trading volume could be attributed to speculative traders investing in crypto, leveraging Dogecoin's volatility and the 'golden cross' technical catalyst detected on its hourly charts.
- Apart from Dogecoin's DOGE/USD pair on Coinbase, there's growing interest in Dogecoin across other exchanges due to increased trading volumes and leveraged bets through futures contracts.
- Despite increased trading activity, the price of Dogecoin is influenced by various factors such as market sentiment, macroeconomic concerns, and support levels, as shown by its recent drop in price despite high volume.
