In one day, Dogecoin recorded an incredible 61 billion DOGE in large transactions, breaking the yearly record for whale movements. Concerns about what might be happening behind the scenes have arisen due to a sharp increase in whale-related activity.
Large transactions indicate active participation of whales, or large holders, in the market, which may indicate significant reallocation or accumulation of assets. Due to the size of their transactions, whales can greatly influence the price of Dogecoin, so high levels of whale activity are often a sign of impending price volatility.
In line with the intense rally that has driven DOGE prices to yearly highs, an examination of online data shows that Dogecoin transaction volume remains high, with more than 60 billion DOGE moving in the last 24 hours. According to IntoTheBlock’s analysis, the vast majority of Dogecoin holders are profiting, as evidenced by the fact that 96.18% of addresses are currently in the money.
This positive on-chain indicator reinforces the idea of strong market sentiment and the potential for further upward movement. Meanwhile, the price of Dogecoin has soared to $0.40 in recent weeks. Due to Dogecoin’s renewed popularity, retail investors have also returned to the market as a result of higher prices. Investors should keep an eye on the resistance zone around $0.40 and the next significant level at $0.50, although this may appear to be a recipe for sustained bullish momentum. If these levels are broken, DOGE will be able to reach even higher price targets.
However, caution must be exercised. Whales may try to profit from extreme whale activity, which often results in either higher prices or a sharp sell-off. Dogecoin could see a correction if the majority of recent whale transactions involve selling rather than accumulation.
