Dogecoin (DOGE), the world’s largest memecoin, has seen a whirlwind of activity lately, with significant whale transactions sparking new speculation about an upcoming rally. In the past week, Dogecoin experienced double-digit losses, but a sudden 3% price surge over the last 24 hours has reignited hopes for bullish momentum. Could the recent whale activity be enough to fuel a prolonged price rally?
Dogecoin Whale Activity: Big Moves in the Market
Dogecoin’s price has been highly volatile, with notable uptrends and downtrends over the past week. According to CoinMarketCap, DOGE’s price dropped by over 13% within seven days, causing concern among investors. However, the last 24 hours provided some relief as Dogecoin saw a price increase of over 3%, bringing its value to $0.1077, with a market capitalization surpassing $15 billion.
While this recent price hike provided optimism, it didn’t immediately boost Dogecoin’s social metrics. According to AMBCrypto’s analysis of Santiment data, DOGE’s social dominance—how much the coin is being discussed—declined over the last few days, indicating that investor conversations around the memecoin had decreased. Additionally, the coin’s weighted sentiment also dropped, reflecting increasing bearish attitudes in the market.
Despite the mixed signals, Dogecoin whales made a significant move. According to a tweet from popular crypto analyst Ali, whales bought over 1 billion DOGE within 24 hours, valued at around $108.7 million. This whale activity is often seen as a positive signal, suggesting that major players in the crypto space believe in a future price rise for Dogecoin.
Will Dogecoin See a Price Rally?
With whale activity increasing, there is growing speculation that DOGE could be poised for a price rally. AMBCrypto’s deeper analysis of IntoTheBlock’s data shows that Dogecoin’s inflow—an indicator of incoming investments—dropped in recent days. A decline in this metric often suggests a decrease in selling pressure, which can be interpreted as a bullish sign for the asset.
However, despite this positive signal, many other metrics remain bearish. For example, DOGE’s Market Value to Realized Value (MVRV) ratio saw a sharp decline last week, signaling that the asset may be overvalued relative to recent market conditions. Additionally, Dogecoin’s transaction velocity has decreased, meaning that the memecoin is being used less frequently for transactions within a specific timeframe.
Dogecoin Price Prediction: Testing Key Resistance Levels
Looking at Dogecoin’s daily chart, the memecoin is currently testing a resistance level near its 20-day Simple Moving Average (SMA). This level is a critical point for DOGE, as a break above the 20-day SMA could potentially trigger a bull rally. However, if DOGE fails to surpass this resistance level, it could face further declines, with the next support level around $0.092.
Conclusion: Is Whale Activity Enough to Drive a Rally?
While the purchase of over 1 billion DOGE by whales is a positive sign, it remains to be seen whether this activity alone is enough to fuel a sustained rally. The mixed market signals, including declining social metrics and bearish technical indicators, suggest that investors should remain cautious. However, if Dogecoin can break through key resistance levels, a potential price surge may be on the horizon.
As always with cryptocurrency, volatility is a constant, and Dogecoin’s future remains uncertain. Investors and traders will need to keep a close eye on whale activity, market sentiment, and price movements as DOGE navigates its next phase.