Dogecoin has seen a significant increase in activity over the past few hours as its price begins to recover after correction over the weekend. Over the past 24 hours, there has been a noticeable increase in the number of large DOGE transactions moving through Dogecoin wallets. These large Dogecoin transactions, typically spanning amounts in excess of $100,000, are often seen as an important indicator of whale or institutional participation in the market.
While large Dogecoin transactions may have been both sell-offs and accumulations, the clear uptick in activity shows positive dynamics for a meme coin.
Large Dogecoin transaction activity intensifies
Dogecoin’s recent rally appears to be losing momentum after an impressive surge it pushed him price above $0.42 for the first time since the 2021 bull market. The seeming profit-taking trend among traders riding out the price rally led to a pullback, sending Dogecoin’s price back below the $0.40 threshold. At the time of writing, Dogecoin price is currently trading below $0.40, having corrected to a low of $0.346 over the last 24 hours.
The correction has led to speculation that perhaps Dogecoin’s price has finally improved sentiment among crypto investors. However, data within the network suggests that this may not be the case. Despite the price correction, the Dogecoin blockchain continued to see a surge in activity.
According to data from analytics IntoTheBlock platform, Dogecoin recorded a high volume of Dogecoin transactions in the last 24 hours, amounting to $23.35 billion, representing a notable increase of 41.12% compared to the previous day. Additionally, during the same period, 157,190 active addresses were registered on the blockchain, representing an increase of 34.91%.
What does this mean for DOGE price?
These indicators highlight the continued interest in Dogecoin, even despite the correction in its prices. The sharp increase in Dogecoin’s large transaction volume and active addresses suggests that traders, especially large holders, are continuing to engage in the meme coin.
The renewed interest appears to have led to increased buying pressure, as evidenced by the simultaneous rise in prices over the past 24 hours. DOGE stock is up about 4% over the past 24 hours and is now up 7.4% from its weekend low.
In addition to the bullish sentiment, cryptanalyst Captain Faibik noted that the Dogecoin price is on the verge a breakout of the upper trend line of the falling wedge pattern. This falling wedge formation has been developing since DOGE price hit a three-year high of $0.4265 on November 14 and began consolidating. Based on this technical analysis, Captain Fibik predicts that a wedge breakout could trigger a new rally, causing the Dogecoin price to rise 25% to $0.47.
At the time of writing, the price of Dogecoin is trading at $0.38.
