- Recent data showed a notable spike in large transactions and trading volume for DOGE, reaching its highest levels last week.
- DOGE’s price movements maintain a strong correlation with Bitcoin.
As a seasoned analyst with over two decades of market experience under my belt, I’ve witnessed countless trends and patterns unfold before my eyes. The recent developments in Dogecoin [DOGE] have caught my attention due to their striking resemblance to some of the most bullish periods in the past.
Over the past week, Dogecoin‘s [DOGE] steep climb from its previous month-long rally has slowed down somewhat. However, it has still managed to achieve modest positive growth of 3.27% over the week and an additional 1.87% in the last 24 hours.
These advancements suggest that positive investor attitudes remain strong, as they continue to employ a strategy known as accumulation – this involves heightened purchasing activities in anticipation of a possible price surge or breakthrough.
This behavior supports AMBCrypto’s hypothesis that a major price move could be imminent.
DOGE records a major spike in large transactions
Over the past day, there’s been a substantial increase in sizeable Dogecoin transactions. These big transactions have peaked at their highest point this week, outdoing even the historic highs set in recent years.
Based on information from IntoTheBlock, the transaction value of Dogecoin skyrocketed to approximately 60.9 billion DOGE, which is equal to around $23.35 billion. This surge was primarily fueled by a staggering 9,410 significant transactions during that timeframe.
Generally, significant trades tend to be executed by investors who possess a minimum of 1% of the total available amount of the asset.
These individuals, sometimes called market “whales,” hold significant sway over market movements, causing either upward surges (rallies) or downturns (declines).
Correlation with BTC
Dogecoin (DOGE) demonstrates a significant relationship with Bitcoin (BTC), the leading cryptocurrency boasting a market capitalization of approximately $1.97 trillion, as per current CoinMarketCap figures.
The strong correlation, at 0.97, suggests that Dogecoin’s price fluctuations closely follow those of Bitcoin. Given Bitcoin’s recent record high of $104,000 and projected growth in future trading sessions, this tight link could potentially boost Dogecoin’s price trend as well.
Additionally, it’s been noted that the period people are keeping their DOGE after transaction has significantly grown. Over the past week, this duration has jumped by an impressive 301.99%, while a more substantial rise of 526.74% over the last 90 days has extended the average holding span to roughly four months.
The pattern indicates that bigger traders are increasingly optimistic about DOGE, viewing it as a promising choice for long-term investments.
Lately, investors labeled as “whales” by AMBCrypto are planning to maintain their investments for approximately four months. It’s worth noting that the usual duration they hold onto their assets is typically shorter – around two months – before engaging in further trading activities, as indicated by a departure from the 30-day holding average.
What’s next for DOGE?
An examination of Dogecoin’s technical aspects indicates a possible increase of around 81.08%. If this prediction holds true, Dogecoin might be traded at approximately $0.84. This forecast is consistent with the coin being in an accumulation stage as per the chart’s perspective.
During this accumulation stage, you’ll find a flat resistance point and a sloping support line that seems to converge. In the past, when similar patterns occur after a significant bullish trend, it often indicates a good chance that the asset will resume its earlier upward trend.
Read Dogecoin [DOGE] Price Prediction 2024-2025
In case this situation develops, there’s a possibility that the meme coin might surge during future trading periods, primarily influenced by large market investors (whales).
If we break through the accumulation stage, it could trigger a predicted surge, potentially driving the cost upwards towards record highs.
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2024-12-08 06:15