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Even with recent market corrections and geopolitical tensions, Dogecoin (DOGE) continues to see gains from both whales and retail investor activity. Santiment’s data shows that whale trading has reached its highest level since June.
Before the Sept. 28 peak, those big investors had managed another 1,203 transactions worth more than $10 million. Such activity suggests that despite the general market’s indifference, key stakeholders within the Dogecoin ecosystem are optimistic.
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The clear increase of active addresses in the Dogecoin network is another important indicator that supports this positivism. Some 63,689 DOGE addresses have exchanged tokens within the last three days; this is the largest number seen since the last six months.
🐶 Dogecoin also trailed -18% from the high back on Saturday. But the on-chain activity shows that whales may be done with all the bullish power of crypto’s top meme coin. Although they took a profit just before reaching the top, their activity remains the highest in the DOGE network. pic.twitter.com/FsmWJGkSE6
– Santiment (@santimentfeed) October 2, 2024
This level of activity is similar to what happened in the first days of April. Ali Martinez, an expert, also confirmed this explosion, saying that active addresses have reached 84,306-strong sales interest in the meme frame. Such interest bodes well for the future of Dogecoin, especially when related to the recent number of wallet addresses being created.
Growth in Adoption Fuels Possible Rally
This increase in on-chain activity is not a small blip on the radar. Martinez found a very promising indicator on the weekly chart of Dogecoin; a price rally will likely result. He drew attention to the bullish MACD crossover that is likely to lead to a 180% increase in DOGE price.
Both of the last two times this metric has returned to bull territory, Dogecoin has delivered a stellar 85% gain in October 2023 and a massive 175% gain in February 2024. If history is any guide, this could mean good things are on the way. The horizon of Dogecoin.
DOGE market cap currently at $14.8 billion. Chart: TradingView.com
It is worth noting that the Dogecoin market fate is complete, based on CoinCodex’s latest price forecast. Based on their analysis, DOGE may decrease by 13% and reach around $0.091695 on November 2, 2024.
A reading of 37 on the Fear & Greed Index still puts traders’ sentiment on the worried side. Dogecoin in the last 30 days managed to have 16 days in the green, accounting for only 53% of the time, while the average price volatility stands at 8.15%. This volatility paints Dogecoin’s sensitivity to market volatility.
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Navigating Market Uncertainty
Given the mixed signals, traders and investors are advised to tread carefully. While the increase in whale activity and retail interactions shows the underlying demand for Dogecoin, one cannot ignore the negative outlook and potential price drop.
The current market volatility can be dangerous for new investors who wish to get involved right now. Whether Dogecoin can stabilize or if it will continue to trend down in the coming weeks will largely depend on the focus on key support levels.
Featured image from Vecteezy, chart from TradingView