Dogecoin On-Chain Activity Hints at 180% Price Rally Ahead

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Despite recent market fluctuations and geopolitical uncertainties, Dogecoin (DOGE) continues to experience an increase in activity from both large investors and retail participants. Data from Santiment indicates that whale transactions have reached unprecedented levels since June.

In the lead-up to the price surge on September 28, these significant stakeholders conducted approximately 1,203 transactions exceeding $10 million each. This level of engagement suggests that, despite the overarching market pessimism, key players within the Dogecoin community remain hopeful.

A noticeable increase in active addresses on the Dogecoin network further reinforces this positive outlook. In the last three days alone, around 63,689 DOGE addresses have swapped tokens; this marks the highest activity observed in the past six months.

Dogecoin has dipped -18% from its peak on Saturday. However, on-chain activity suggests that whales may still be riding the bullish wave of crypto’s leading meme currency. Although they collected profits just prior to the peak, their involvement in the DOGE network remains high. pic.twitter.com/FsmWJGkSE6

— Santiment (@santimentfeed) October 2, 2024

This degree of engagement resembles the activity seen in early April. Analyst Ali Martinez corroborated the surge, noting that active addresses have expanded to a remarkable 84,306, indicating a significant influx of retail interest in the meme coin. Such enthusiasm is a positive sign for Dogecoin’s future, particularly in relation to the increasing number of created wallet addresses.

Increasing Adoption Could Trigger Rally

The rise in on-chain activity is not merely a fleeting moment. Martinez discovered a highly encouraging signal on the Dogecoin weekly chart; a price increase seems probable. He highlighted a bullish MACD crossover that could potentially lead to a remarkable 180% surge in DOGE’s price.

On the two previous occasions when this metric turned bullish, Dogecoin experienced a staggering 85% increase in October 2023, followed by an extraordinary 175% rise in February 2024. If past trends are any indication, this could spell positive developments for Dogecoin.

DOGE market cap currently at $14.8 billion. Chart: TradingView.com

It is important to note that the overall market sentiment surrounding Dogecoin is currently bearish, according to recent price forecasts by CoinCodex. Their analysis suggests that DOGE could decline by 13%, potentially settling around $0.091695 by November 2, 2024.

A Fear & Greed Index score of 37 still indicates a cautious sentiment among traders. Over the past 30 days, Dogecoin has recorded 16 days of price increases, making up only 53% of the time, with an average price volatility of 8.15%. This variability highlights Dogecoin’s sensitivity to market changes.

Navigating Market Uncertainties

Given the conflicting signals, it is prudent for traders and investors to proceed with caution. While the uptick in whale interest and retail participation suggests a demand for Dogecoin, one must not ignore the prevailing negative sentiment and the possibility of a price decrease.

The current market volatility poses risks for new investors looking to enter at this time. Whether Dogecoin can maintain stability or continue its downward trend in the coming weeks largely hinges on its ability to hold critical support levels.

Featured image from Vecteezy, chart from TradingView

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