Dogecoin: Can whales help DOGE target $0.50 next?

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  • Whale activity signaled renewed confidence, as the price rebounded from the key $0.31 support zone.
  • Market sentiment aligned bullishly, driven by rising metrics and short liquidations.

Over the last 48 hours, significant interest in Dogecoin [DOGE] has been sparked again as large investors (whales) amassed approximately 470 million Dogecoins.

This extensive purchasing activity suggests that major investors are regaining trust, fueling discussions about the possibility of Dogecoin experiencing an upturn.

Additionally, following an extended period of gathering strength, this action may indicate a potential upward trend, fueling anticipation for a bullish surge. Could this amassment signal the beginning of Dogecoin’s significant leap within the cryptocurrency market?

Whale activity and its impact on DOGE price action

Currently, Dogecoin is being exchanged for approximately $0.3319, marking a 0.70% rise over the past 24 hours. It’s worth noting that its price has significantly surged from the $0.31 support level, a point where it had earlier stemmed the falling trend.

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Consequently, it seems like buyers are gaining dominance again. For now, there’s strong resistance around $0.40, but if buyers persist, a significant goal of $0.50 might be achieved. Should the buying pressure continue, ongoing accumulation by whales could potentially drive the price higher still.

DOGE NVT ratio signals renewed network activity

The Network Value to Transactions (NVT) ratio for Dogecoin has experienced a substantial spike, reaching 703. This surge follows a prolonged period of lower values, suggesting that the coin’s market valuation is climbing at a faster pace than its transaction activity. Such a rise might signal more optimistic investor attitudes towards Dogecoin.

Yet, these spikes in value are usually indicative of speculative activity or long-term accumulation, not immediate usage. Consequently, it’s essential to keep track of whether the volume of transactions aligns with the growth of valuation.

Daily active addresses show consistent growth

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Today’s daily active addresses have shown a steady increase, climbing from 72,200 yesterday to 86,600 at the moment. This persistent growth indicates a surge in network participation, which typically leads to higher trading volumes and overall activity.

Furthermore, an increase in the number of active addresses often indicates increased trust from both individual retail investors and large institutional ones. A consistent rise in active addresses might bolster a more optimistic outlook for Dogecoin as a whole.

DOGE market sentiment shows a bullish tilt

The general feeling towards Dogecoin is a mix of guarded enthusiasm, as open interest has increased by 5.25% to reach $3.49 billion. It’s worth noting that recent market activities have shown a higher number of short positions being liquidated ($22,590) compared to long positions ($372,570).

This skew indicates that aggressive buyers might be pushing out pessimistic sellers, potentially leading to a continued rise in prices. In the immediate future, the market seems to be leaning towards more optimistic scenarios.

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Read Dogecoin’s [DOGE] Price Prediction 2025–2026

Conclusion: Is Dogecoin primed for a breakout?

The increased activity of large investors (whales) in Dogecoin, along with growing on-chain statistics and optimistic market behavior, suggests a favorable trend. Yet, surpassing the $0.40 resistance level is vital for validating a continuous upward movement.

Should the current level be surpassed, it’s possible that Dogecoin might set its sights on a new goal of $0.50 or even higher. With rising network activity and strengthening investor trust, Dogecoin appears primed for another significant leap forward.

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2025-01-11 20:07