As prices soared, Dogecoin broke the $0.40 mark for the first time in over three years, reminding everyone of its presence once again. This significant surge indicates the continued appeal and speculative strength of Dogecoin, attracting both small and large cryptocurrency investors.
With Dogecoin's rise over the past month, wallet dynamics have also changed significantly. As retail interest surged, the number of wallets holding less than 100,000 Dogecoin has increased by nearly 75,000. However, large investors, especially shark and whale wallets, have been reducing their holdings, with a net decrease of 350 wallets in the past four weeks, while small investors are clearly accumulating Dogecoin.
Notably, this trend seems to have reversed in recent days, as 108 larger wallets returned to DOGE, which may be one of the reasons for the recent rebound. According to the chart, Dogecoin's price has skyrocketed nearly vertically, surpassing earlier resistance levels. Due to strong buying pressure, the token quickly broke through $0.40, a level not seen since early 2021.
Due to the exponential moving average pointing sharply upward, the moving averages are aligning with this upward trend. However, given that extreme increases can lead to rapid pullbacks, it is advisable to proceed with caution as DOGE's relative strength index (RSI) approaches the overbought territory.
In the coming days, Dogecoin will face significant challenges. To maintain this upward momentum, continued accumulation by both smaller and larger shareholders would be ideal. If large investors (especially whales) start selling off again, it could signal that the rally may be nearing its peak. However, if retail enthusiasm remains strong and large wallets reinvest, Dogecoin may achieve further growth.
