Dogecoin has been experiencing a remarkable surge in activity recently as its price starts to recover after a weekend correction. In the past 24 hours, there has been a significant uptick in the number of large DOGE transactions across various Dogecoin wallets. Typically, these large transactions involve amounts exceeding $100,000, often indicating the involvement of whales or institutional investors in the market.
While these substantial Dogecoin transactions could represent either selloffs or accumulations, the dramatic spike in activity suggests a favorable trend for the meme-inspired cryptocurrency.
Intensified Activity in Large Dogecoin Transactions
The recent rally in Dogecoin’s price seems to be losing momentum after an impressive increase, which saw its value rise above $0.42 for the first time since the bull market of 2021. A wave of profit-taking among traders who benefited from this price surge has triggered a pullback, bringing the Dogecoin price back below the $0.40 mark. As of the time of writing, Dogecoin is trading below $0.40, having dipped to a low of $0.346 within the past 24 hours.
On-Chain Data and Market Sentiment
This correction has sparked discussions about whether Dogecoin has finally broadened its appeal among crypto investors. However, on-chain data indicates that this may not be the case. Despite the price correction, the Dogecoin blockchain continues to experience a surge in activity. According to data from the analytics platform IntoTheBlock, Dogecoin recorded a substantial $23.35 billion in large transaction volume over the past 24 hours, marking a significant 41.12% increase compared to the previous day. Additionally, the blockchain saw 157,190 active addresses during this period, representing a 34.91% rise.
Implications for Dogecoin’s Price
These metrics underscore the sustained interest in Dogecoin, even amidst its price correction. The sharp uptick in both large transaction volume and active addresses suggests that traders, especially large holders, remain actively engaged with the meme coin.
Technical Analysis and Future Projections
This renewed interest seems to be contributing to increased buying pressure, as evidenced by a concurrent price uptick in the past 24 hours. Dogecoin has risen by approximately 4% during this period and is now up 7.4% from its weekend low. Adding to the optimistic outlook, crypto analyst Captain Faibik has highlighted that Dogecoin’s price is on the verge of breaking above the upper trendline of a falling wedge pattern. This pattern has been forming since DOGE’s price reached a three-year high of $0.4265 on November 14 and began to consolidate. Based on this technical analysis, Captain Faibik anticipates that a breakout from this wedge could trigger another rally, potentially pushing Dogecoin’s price up by 25% to reach $0.47.
As of the time of writing, Dogecoin is trading at $0.38.
