Following a week of significant price declines, Dogecoin [DOGE] has finally shown signs of an upward trend. The leading memecoin experienced a price increase. The question now is whether this positive momentum will persist.
Significant Move by Dogecoin Whales
Over the past week, Dogecoin has seen notable fluctuations, both upward and downward. Specifically, according to data from CoinMarketCap, the price of DOGE dropped by more than 13% in the last seven days.
However, in the last 24 hours, investors saw a turnaround as the coin’s price surged by over 3%. Currently, the world’s largest memecoin is trading at $0.1077 with a market capitalization exceeding $15 billion.
Despite the recent price increase, there has not been a corresponding positive impact on the memecoin’s social metrics.
An analysis of Santiment’s data by CryptoCrypto revealed a decrease in DOGE’s social dominance in recent days, indicating a decreasing level of investor discussion surrounding the memecoin.
Moreover, sentiment analysis showed a decline in weighted sentiment, suggesting a growing bearish sentiment towards the coin in recent times.
Meanwhile, amid these price movements, Dogecoin whales have made a significant acquisition. A prominent crypto analyst, Ali, recently shared a tweet highlighting this development.
According to the tweet, whales purchased more than 1 billion DOGE in the past 24 hours, amounting to approximately $108.7 million. This move indicated confidence among major market players in the memecoin and an anticipation of a price increase.
Is Dogecoin Set for an Upcoming Price Surge?
Given the possibility of a price hike, CryptoCrypto delved deeper into the current state of the world’s largest memecoin to assess whether the metrics signaled a bullish rally.
Analysis of IntoTheBlock’s data showed a decline in DOGE’s inflow over the past few days, indicating a reduced selling pressure on the asset, which could be interpreted as a bullish sign.
However, other metrics painted a bearish picture for Dogecoin. For instance, DOGE’s MVRV ratio witnessed a sharp decline last week, and the memecoin’s velocity also decreased, suggesting reduced transactional activity within a specified period.
Further examination was conducted on the memecoin’s daily chart. According to the analysis, DOGE was testing a resistance level near its 20-day Simple Moving Average (SMA). This test holds significance as a breakout above this level might trigger a bullish rally. Failure to breach this level, however, could potentially lead to a drop to $0.092.