Dogecoin Falls 18%, But Whale Activity Is Positive
Dogecoin dropped more than 20% this week, from $0.1321 on Saturday to $0.1026 on Tuesday. The popular meme currency may recover despite this dip, according to on-chain measurements and expert research.
Dogecoin Price Stays High
Today, on-chain analytics startup Santiment presented a thorough overview of Dogecoin's activities via X, showing strong whale engagement. Dogecoin fell 18% from its Saturday high. However, on-chain behavior suggests whales may not be done with crypto's top meme coin's strong momentum. They profited before the peak, but their activity on DOGE's network remains robust, Santiment stated.
Dogecoin's network activity surged to a 7-month high in address activity and 4-month high in whale transactions, while retail transactions soared on the price decrease, according to the analytics company.
The longest period since April 2-4 saw 63,689 DOGE addresses move currency in three days. On September 28, 1,203 whale trades (>$100,000) preceded the local Dogecoin price high. This is the most whale activity since May 26-28.
Technical research by the crypto specialist boosts Dogecoin bullishness. Martinez suggests DOGE may be reaching a weekly MACD bullish crossing, indicating price gains. Dogecoin DOGE soared 90% and 180% after MACD bullish crossovers on the weekly chart. A fresh MACD bullish crossing may be coming, he said.
Technical analysis relies on MACD. It has two lines: the MACD line, the difference between the 26- and 12-period exponential moving averages (EMAs), and the signal line, the MACD line's 9-period EMA. Bullish crossovers, when the MACD line crosses above the signal line, indicate a market trend change from bearish to bullish and are likely purchase indications.
