In the past few hours, the trading volume of Dogecoin has surged significantly, and its price has begun to rebound after a weekend pullback. The number of large transactions involving Dogecoin in wallets has significantly increased in the past 24 hours. These large transactions typically involve amounts exceeding $100,000 and are often seen as important indicators of whale or institutional participation in the market.
Although large transactions of Dogecoin may be accumulation or sell-off, the surge in trading activity indicates that this meme coin is showing a positive trend.
Dogecoin large transaction activity is intensifying
Recent upward momentum in Dogecoin seems to be losing steam after a significant surge in price, breaking above $0.42 for the first time since the 2021 bull market. During the price rise, there seems to be a trend of profit-taking among traders, leading to a pullback, with Dogecoin's price dropping below the $0.40 threshold. At the time of writing, Dogecoin's price is currently trading below $0.40, having retraced to a low of $0.346 in the past 24 hours.
This adjustment has sparked thoughts that Dogecoin's price may finally be gaining attention among cryptocurrency investors. However, on-chain data suggests that this may not be the case. Despite the price adjustment, activity on the Dogecoin blockchain continues to surge.
According to data from the analysis platform IntoTheBlock, Dogecoin's trading volume reached $23.35 billion in the past 24 hours, a significant increase of 41.12% compared to the previous day. Meanwhile, the number of active addresses on the Dogecoin blockchain reached 157,190, up 34.91% from the previous day.
What does this mean for DOGE's price?
These indicators suggest that even during price adjustments, interest in Dogecoin remains sustained. The sharp increase in Dogecoin's trading volume and active addresses indicates that traders, especially large holders, are still interested in this meme coin.
This new interest seems to have translated into increased buying pressure, as evidenced by the simultaneous price rise in the past 24 hours. DOGE has risen about 4% in the past 24 hours and has increased 7.4% from the weekend low.
Cryptocurrency analyst Captain Faibik points out that Dogecoin's price is about to break through the upper trend line of a descending wedge pattern, further strengthening bullish sentiment. This descending wedge pattern has been developing since Dogecoin’s price reached a three-year high of $0.4265 on November 14 and began to consolidate. Based on this technical analysis, Captain Faibik predicts that a breakout from the wedge could trigger another rally, pushing Dogecoin's price up 25% to $0.47.
At the time of writing, Dogecoin's price is $0.38.
