According to U.Today, Dogecoin is showing signs of recovery after a week of declining performance among top altcoins. The trading volume of Dogecoin has seen a significant increase of over 58% in the past 24 hours, reaching $600,461,241, indicating a potential recovery.
Over the weekend, Dogecoin whales, or large-scale holders, have significantly influenced the market by acquiring a total of 6.4 billion DOGE overnight. According to data from crypto analytics platform IntoTheBlock, Dogecoin whale transactions have increased from a low of 5.37 billion DOGE in the past seven days to about 11.74 billion DOGE before settling at the current figure. These transactions are those related to Dogecoin accumulations worth at least $100,000. This accumulation by whales is often seen as a sign of confidence that a price rally may be imminent. The current trend in Dogecoin suggests that such a rally might soon be recorded.
Despite the recent bearish drawdown, with the price down 1.59% in 24 hours to $0.134 and a slump of 7.12% over the past week, the continued accumulation by whales could potentially trigger a shift in stance. This could drive scarcity in the supply of Dogecoin, potentially triggering a price surge.
However, Dogecoin's influence on the market is gradually reducing, despite its $19,464,473,979 market cap. Rather than fueling a market drawdown, it is more susceptible to being influenced by the broader trend in the ecosystem. This could be a positive development, as its correlation with Bitcoin might pay off when the spot Bitcoin ETF inflows help return the top coin to its All-Time High (ATH). Meanwhile, Dogecoin developer Mishaboar has warned the community about the risks of pursuing alternatives without proper risk assessment.
