Dogecoin makes a strong comeback, with a 10% rebound breaking through $0.4, 60,000 new investors flood in, is the $0.5 threshold in sight?
The price of Dogecoin saw a significant rebound on Wednesday, reaching $0.40. It is worth noting that on Tuesday, Dogecoin hit a 20-day low of $0.36, now rising by as much as 10%. From December 2 to December 11, the number of wallets holding DOGE increased by 60,000, which undoubtedly indicates that many new investors have entered the market taking advantage of the price drop.
Looking at the technical indicators for trading volume, it shows that Dogecoin's rebound is strongly supported by a significant increase in market liquidity.
On Wednesday, Dogecoin's price successfully broke through the $0.40 mark, with bulls driving a 10% increase in the past 24 hours. On-chain data trends indicate that many new investors seized the opportunity to buy at lower prices during the cryptocurrency market adjustment.
After the intense volatility at the start of the week, Dogecoin's price has entered a phase of rapid rebound alongside other major cryptocurrencies. Recent market analysis suggests that this rebound seems to stem from traders' positive reactions to the latest consumer inflation report released by U.S. regulators.
Bitcoin led the way in the rebound, recovering to the level of $101,000, while Dogecoin also performed well, successfully reversing some of the losses suffered during Monday's sharp decline in the crypto market.
In a generally sluggish cryptocurrency market, approximately 60,000 new wallets have resolutely chosen to purchase DOGE. Following the release of the latest U.S. CPI data, investors have been betting that the Federal Reserve may cut interest rates again, which has evidently driven Dogecoin and other cryptocurrencies to initiate a preliminary rebound.
However, upon closer analysis of the underlying on-chain data, we find that many traders who strategically positioned themselves during the market downturn played a key role in Dogecoin's 10% recovery process.
