Dogecoin has seen a significant increase in activity over the past few hours as its price begins to recover from a correction over the weekend. Over the past 24 hours, there has been a significant increase in the number of large DOGE transactions going through Dogecoin wallets.
These large Dogecoin transactions, often involving amounts greater than $100,000, are often considered a key indicator of whale or institutional involvement in the market.
Although large Dogecoin transactions may be a sell-off or accumulation, the spike in activity suggests a positive trend for this meme coin.
Large trading activity of Dogecoin is increasing
The recent price surge of Dogecoin seems to be losing momentum after an impressive rally that pushed its price above $0.42 for the first time since the bull market of 2021. A trend of profit-taking appears to have overtaken the rally, resulting in a pullback that brought Dogecoin's price back below the $0.40 threshold. At the time of writing, Dogecoin is currently trading below $0.40, having adjusted to a low of $0.346 in the past 24 hours.
The adjustment has raised the idea that perhaps Dogecoin's price has finally extended the sentiment of cryptocurrency investors. However, on-chain data suggests this may not be true. Despite the price adjustment, the Dogecoin blockchain continues to witness an increase in activity.
According to data from the analysis platform IntoTheBlock, Dogecoin recorded $23.35 billion in large trading volume in the past 24 hours, a significant increase of 41.12% compared to the previous day. Additionally, the blockchain recorded 157,190 active addresses during the same period, marking an increase of 34.91%.
What does this mean for DOGE's price?
These figures highlight the ongoing interest in Dogecoin, even as its price is adjusting. The strong increase in large trading volume and active addresses of Dogecoin indicates that traders, especially large holders, are still engaged with this meme coin.
This renewed interest seems to have translated into increased buying pressure, evidenced by the simultaneous price increase in the past 24 hours. DOGE has risen approximately 4% in the past 24 hours and is currently up 7.4% from its weekend low.
Adding to the bullish sentiment, cryptocurrency analyst Captain Faibik pointed out that Dogecoin's price is on the verge of breaking through the upper trendline of a descending wedge pattern. This descending wedge pattern has developed since DOGE's price peaked at a three-year high of $0.4265 on November 14 and began consolidating. Based on this technical analysis, Captain Faibik predicts that a breakout from the wedge could trigger another price surge, pushing Dogecoin's price up by 25% to $0.47.
