In the past few hours, Dogecoin's trading volume has surged significantly, and after experiencing a weekend correction, its price has begun to rebound. In the past 24 hours, there has been a significant increase in large transactions in Dogecoin wallets, with these large transactions typically involving amounts exceeding $100,000, which are generally seen as key indicators of whale (large holder) or institutional participation in the market.
Although the large transactions of Dogecoin may be accumulating chips or selling, the sharp increase in trading activity indicates that this meme coin shows a positive development trend.
Dogecoin's large transaction activity has become increasingly frequent, but its upward momentum seems to be gradually weakening recently. Previously, Dogecoin's price surged significantly, breaking $0.42 for the first time since the 2021 bull market. During the price increase phase, traders began to take profits, leading to a price correction, causing Dogecoin's price to drop below $0.40. At the time of writing, Dogecoin's current trading price is below $0.40, having even corrected to a low of $0.346 in the past 24 hours.
This price adjustment makes people wonder if Dogecoin's price has finally caught the attention of 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 increase rapidly.
According to data provided by the analysis platform IntoTheBlock, Dogecoin's trading volume in the past 24 hours reached $23.35 billion, 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, an increase of 34.91% compared to the previous day.
So what do these situations mean for Dogecoin's price?
These indicators show that even during the price adjustment phase, interest in Dogecoin has continued. The sharp increase in Dogecoin's trading volume and the number of active addresses indicates that traders, especially those with large holdings, remain very interested in this meme coin. This newly generated interest seems to have translated into increased buying pressure, as evidenced by the price rise in the past 24 hours. Dogecoin has risen about 4% in the past 24 hours, and compared to the weekend low, it has increased by 7.4%.
Cryptocurrency analyst Captain Faibik pointed out that Dogecoin's price is about to break above the upward trend line of the descending wedge pattern, further strengthening bullish market sentiment. Since Dogecoin's price reached a three-year high of $0.4265 on November 14 and began to consolidate, this descending wedge pattern has been forming.
Based on this technical analysis, Captain Faibik predicts that once this wedge is broken, it could trigger a new round of rebounds, pushing Dogecoin's price up by 25% to reach $0.47. Currently, Dogecoin's price is around $0.38.
