In the past 24 hours, the massive trading volume of Dogecoin [DOGE] surged by 400%, while the price has also significantly increased by 18% over the past week.
The sudden increase in whale activity has sparked speculation about a potential rise in DOGE. Whale transactions are typically significant market drivers, and large trades can lead to price fluctuations.
As whales continue to accumulate Dogecoin, many analysts predict that the token could reach the coveted $1 target.
Whale activity signals bullish momentum.
The recent price surge of Dogecoin seems to be driven by intensified whale activity. Santiment data shows that large transactions over $100,000 increased by 400% in the past 24 hours, indicating that well-funded investors are showing increased interest in Dogecoin.
Historically, an increase in whale trading volume often precedes bullish trends. These large transactions usually reflect accumulation phases or strategic positioning for further increases.
The rise in trading volume and heightened market optimism suggest that whales are betting on continued increases. Due to strong interest from institutional investors, analysts speculate that Dogecoin may retest its historical highs. It could reach the coveted $1 milestone in the coming months.
Short-term price forecast.
The price movement of Dogecoin makes it a strong contender for further bullish momentum in the near term. Data shows that supported by steadily increasing trading volume and liquidity, Dogecoin has clearly broken out of its consolidation phase.
The CMF indicator hovers in the positive zone at 0.06, with capital inflow indicating sustained buying pressure and strong demand in the market.
Additionally, the RSI remains below overbought levels, indicating that there is still room for further increases, and there is no immediate risk of a pullback. This technical trend, coupled with strong whale activity, enhances short-term bullish sentiment.
Market liquidity seems sufficient to support further increases. The recent surge in trading volume indicates that confidence among retail and institutional participants is steadily growing.
However, Dogecoin faces psychological resistance around the $0.40 mark. Breaking this level could pave the way for $0.50, which is a key level on the way to $1.
Although the current situation favors a bullish scenario, traders should remain cautious regarding potential volatility. This could be driven by macroeconomic factors or whales taking profits. The short-term price trend may depend on continued volume growth and broader market sentiment.