Whales Return To Dogecoin As Bullish Metrics Heat Up
The bull case for Dogecoin is still very strong even though the coin has taken quite a beating over the last couple of weeks. The market reversal coupled with the higher rate of adoption that the meme coin is seeing could see it complete a 50% move toward the upside in the short term.
Dogecoin Whale Transactions Are On The Rise
In the last week, Dogecoin whales have been rousing from their slumber. This came to a head on Sunday, May 28, when whale DOGE transactions hit one of its highest levels. Data from IntoTheBlock shows that large DOGE transactions, i.e. transactions carrying at least $100,000 worth of coins crossed $1.94 billion in the last seven days.
As a result, Dogecoin’s volume rose exponentially as well, crossing the $1 billion mark. This rapid rise in volume shows a willingness on the part of investors to participate in the market once more, which plays further into the bullish narrative for the meme coin.
The transaction volume is not the only Dogecoin metric that also saw an increase in the last week. The number of DOGE transactions being carried out on the network also rose exponentially, thanks to the popularity of BRC-20 tokens.
DOGE daily transactions cross 2 million | Source: BitInfoCharts
According to BitInfoCharts, the number of daily DOGE transactions grew from an average of 20,000 at the beginning of May to 2.0777 million on May 27. This rise in the number of transactions also explains the rise in trading volume, as well as the growing bullish sentiment across the community given that more network activity means more demand for DOGE.
DOGE Could Blow Up In The Short Term
As was the case with Bitcoin when Ordinals and BRC-20 tokens gained popularity, translating to a surge in price, DOGE could follow the same trend. If this happens, then the price of Dogecoin could break away from the general market trend and begin a solo rally.
DOGE recovers above $0.073 | Source: DOGEUSD on TradingView.com
With its already high volumes, such a solo rally could see DOGE rise as much as 50% from its current level. Furthermore, investors are already cycling back gains from smaller meme coins such as PEPE back into DOGE, providing even more cushion for the digital asset.
If DOGE does continue to rise, its first major resistance lies at $0.075 at this point. However, this resistance is not as strong as the one at $0.08, which will really determine if the meme coin can climb up to 50%.
At the time of writing, DOGE is trending at a price of $0.073, up 1.02% in the last day and 1.69% in the last week.
Source: Bitcoinist
