In the past few hours, Dogecoin's trading volume has surged, and its price has begun to rebound after a weekend correction. The number of large Dogecoin transactions in wallets has significantly increased in the past 24 hours. These large Dogecoin transactions typically involve amounts exceeding $100,000 and are often seen as important indicators of market participation by whales or institutions.
Although large transactions in Dogecoin may indicate accumulation or selling, the surge in trading activity suggests that this meme coin is showing a positive trend.
Dogecoin large transactions are intensifying
Recently, Dogecoin's upward momentum seems to be losing steam after a significant rise in price, breaking above $0.42 for the first time since the bull market of 2021. During the price increase, traders appear to have taken profits, leading to a price correction, with Dogecoin's price falling below the $0.40 threshold. At the time of writing, Dogecoin's trading price is currently 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 garnering 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 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. At the same time, 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 prices?
These indicators suggest that interest in Dogecoin remains strong even during price corrections. 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 an increase in buying pressure, as evidenced by the simultaneous rise in price over the past 24 hours. DOGE has risen about 4% in the past 24 hours and has increased by 7.4% from the weekend low.
Cryptocurrency analyst Captain Faibik points out that Dogecoin's price is about to break the upper trend line of a descending wedge pattern, further enhancing bullish sentiment. This descending wedge pattern has been developing since November 14 when Dogecoin's price reached a three-year high of $0.4265 and began to consolidate. Based on this technical analysis, Captain Faibik predicts that a breakout from the wedge could trigger another round of rally, pushing Dogecoin's price up by 25% to $0.47.
At the time of writing, Dogecoin's price is $0.38.
