In the face of recent market corrections and geopolitical tensions, Dogecoin (DOGE) continues to garner significant interest from both whales and retail investors. According to data from Santiment, whale transactions have surged to new heights, marking a peak not seen since June.
Whale Transactions Reach New Milestones
Before the price peak on September 28, major investors orchestrated approximately 1,203 transactions valued at over $10 million each. This activity underscores the optimism among significant stakeholders within the Dogecoin ecosystem, despite the overarching negative sentiment in the macro market.
Active Addresses on the Rise
Another critical indicator of Dogecoin’s growing appeal is the noticeable increase in active addresses on its network. Over the past three days, approximately 63,689 DOGE addresses have engaged in token exchanges, marking the highest figure observed in the last six months.
This surge in activity mirrors patterns from early April. According to Ali Martinez, a prominent analyst, active addresses have swelled to an impressive 84,306, reflecting a substantial influx of retail interest in the meme coin. This heightened interest bodes well for Dogecoin’s future, particularly concerning the increasing number of newly created wallet addresses.
Growing Adoption Fuels Possible Rally
The rise in on-chain activity is more than just a temporary fluctuation. Martinez has identified a highly promising signal on the Dogecoin weekly chart, indicating a potential price rally. He highlights a bullish MACD crossover, which could trigger a 180% increase in DOGE’s price.
Historically, when this metric has shifted back into bullish territory, Dogecoin has experienced significant gains. Notably, it surged by 85% in October 2023 and achieved an astounding 175% increase in February 2024. If history serves as a guide, the future may hold positive developments for Dogecoin investors.
Current Market Sentiment
Despite these promising indicators, the overall market sentiment for Dogecoin is currently bearish, according to the latest price predictions by CoinCodex. Their analysis suggests that DOGE could decline by 13%, potentially reaching approximately $0.091695 by November 2, 2024.
The Fear & Greed Index, with a reading of 37, reflects traders’ cautious sentiment. Over the past 30 days, Dogecoin has experienced 16 green days, accounting for 53% of the time, with an average price volatility of 8.15%. This volatility indicates Dogecoin’s sensitivity to market fluctuations.
Navigating Uncertainty in the Market
Given the mixed signals, traders and investors are advised to exercise caution. While the increase in whale activity and retail engagement suggests an underlying demand for Dogecoin, the prevailing negative sentiment and potential price drop cannot be ignored.
The current market volatility poses risks for new investors considering entering the market at this time. Whether Dogecoin can stabilize or continue its downward trend in the coming weeks will largely depend on maintaining focus on critical support levels.
