With Trump’s victory, Dogecoin [DOGE] has been on a tear, and has recently surged to a yearly high of $0.43. During this period, the memecoin has surged 94.36% on the weekly chart.

However, recent price action has raised concerns about potential downside risks. DOGE has fallen 3.15% in the last 24 hours. This has left many investors speculating on the next move. But as long as the $0.35 support level holds, DOGE’s uptrend is safe.

Market sentiment

With the market sentiment rising due to Trump’s victory and the market excitement peaking since President Trump confirmed Elon Musk’s involvement in the DOGE sector, this has boosted the market sentiment in the shorter time frame. DOGE is forming a bullish flag.

When an asset forms a bull flag pattern, it indicates that the uptrend is likely to continue.

But for the bull flag to hold, the $0.35 support level must hold. This would validate the bull flag and confirm the bullish outlook.

Upon confirmation, memecoin will surge 45% to $0.56. Therefore, DOGE must hold the $0.35 support level to rise further.

DOGE's largest transactions hit a new high this year, indicating strong investor interest

IntoTheBlock's data on large Dogecoin transactions also showed that the number of large transactions surged to its highest point this year.

In the past 24 hours, a total of 61,300 large transactions took place, which is the same as a week ago, and the transaction volume has increased significantly.

This growth indicates an increase in activity from larger players in the market, which could be institutional investors or other large players.

Taking into account the temporal structure of the phenomenon, the high value of large contracts appeared in April 2024. Now their highest levels are seen in October and November.

The peak growth in market volumes is also correlated with the price dynamics of Dogecoin, which recently broke through the $0.40 mark.

Such trends indicate strong accumulation and strengthen the trust of most investors in such investments.

Given the massive increase in large transactions in the past, coupled with the large price swings, this data clearly shows that major deep-pocketed players are accumulating DOGE.

This scenario portends significant price volatility in the coming weeks and an accumulation phase.

This marks the highest level of large transaction volume activity in 2024. This indicates that the interest of institutions or whales in Dogecoin is high.

What the price chart says

While technical analysis and renewed investor interest suggest a positive outlook, other indicators must be examined to determine what they mean.

First, Dogecoin’s NVT ratio (including circulating supply) has dropped from a high of 582.06 to 111.03 over the past month. When this ratio drops, it indicates that the network is experiencing more real-world usage and adoption.

This is a bullish sign as strong network usage and transaction volumes support price increases, rather than speculation.

Additionally, Dogecoin’s MVRV long/short spread has risen to 62.82% over the past month. This generally reflects bullish sentiment, especially during a market rally.

In this case, it shows that long-term holders are confident in the market and see potential price appreciation.

Therefore, the market is still preparing for the continuation of the uptrend. This will clarify that the decline on the daily chart was just a correction before the market attempts another uptrend.

In short, the current market conditions are in favor of DOGE and memecoin is likely to record more gains. If such favorable conditions persist, memecoin will reclaim the $0.44 level and face the next resistance at $0.48.