3 October 2024
Even with recent market corrections and geopolitical tensions, Dogecoin (DOGE) keeps seeing an uptick in both whales and retail investor activity. Data by Santiment reveals that whale transactions have hit new highs since June.
Before the price peak of September 28, those major investors had controlled some 1,203 transactions worth more than $10 million. Such activity suggests that despite the macro market’s negativity, significant stakeholders within the Dogecoin ecosystem are optimistic.
A clear rise in active addresses on the Dogecoin network is another important indication supporting this positivism. Some 63,689 DOGE addresses have changed tokens during the past three days; this is the biggest figure seen since six months ago.
Dogecoin has retraced -18% from its top back on Saturday. But on-chain activity indicates that whales may not be done with all the bullish momentum of crypto’s top meme coin. Though they took profit just before the top, their activity remains very high on DOGE’s network. pic.twitter.com/FsmWJGkSE6
— Santiment (@santimentfeed) October 2, 2024
This level of activity is similar to what occurred in the early days of April. Ali Martinez, an expert, further confirmed the boom, saying active addresses have ballooned to 84,306-strong influx of retail interest into the meme coin. Such interest positively augurs well for the future of Dogecoin, especially when related to the latest number of wallet addresses being created.
Growing Adoption Fuels Possible Rally
This on-chain activity rise is not a small blip on the radar. Martinez has found a very promising indicator on the Dogecoin weekly chart; a price rally will most likely be caused. He drew attention to a bullish MACD crossover which will probably lead to a 180% increase in the price of DOGE.
Both of the previous two occasions when this metric flipped back into bull territory, Dogecoin provided an astronomical increase of 85% in October 2023 and a whopping 175% gain in February 2024. If history is any guide, this could mean good things are on the horizon for Dogecoin.
It’s worthy to note that the overall market sentiment for Dogecoin is bearish, based on the latest price predictions by CoinCodex. Based on their analysis, DOGE may drop by 13% and hit around $0.091695 by November 2, 2024.
A reading of 37 from the Fear & Greed Index still places the traders’ sentiment on the worry side. Dogecoin has in the last 30 days been able to experience 16 green days, accounting for only 53% of the time, with an average price volatility standing at 8.15%. This volatility paints sensitivity by Dogecoin towards market fluctuations.
Navigating Uncertainty In The Market
Given the mixed signals, traders and investors are advised to tread carefully. Although the increase in whale activity and retail interaction points to an underlying demand for Dogecoin, one cannot overlook the negative sentiment and possible price drop.
The present volatility of the market could be risky for new investors wishing to engage right now. Whether Dogecoin can stabilize or if it will keep trending down in the next weeks will depend mostly on a concentration on important support levels.
Featured image from Vecteezy, chart from TradingView