Memecoins have witnessed significant volatility in the past week, with Dogecoin (DOGE) being no exception. As of the latest update, DOGE was priced at $0.1076, reflecting an 8.87% weekly decrease and extending the bearish trend by 5.24% over the last 24 hours.
Despite this recent dip, sentiment in the market suggests that Dogecoin might be gearing up for a potential rally. Prior to this decline, DOGE had been on an upward trend, rising by 12.35% on a monthly basis after hitting a local high of $0.132.
While Dogecoin’s price charts show fluctuations, there has been a notable accumulation by holders, indicating a positive outlook for the cryptocurrency.
2.07 Billion DOGE Accumulated by Holders
Despite the price decrease, Dogecoin holders have been accumulating tokens consistently. Reports indicate that over the past week, holders have amassed 2.07 billion DOGE.
This accumulation suggests that investors are taking advantage of the recent dip, anticipating potential future growth. This heightened trading activity is evident in the increased trading volume over the last 24 hours, which surged by 32.8% to $810 million, according to CoinMarketCap.
A similar scenario occurred in January 2024 when DOGE saw a significant surge from $0.074 to $0.209 after holders accumulated tokens. If history repeats itself, we could be on the brink of another price surge in the near future.
Analysis of DOGE’s Market Trends
Current market conditions point towards the possibility of further gains for Dogecoin.
For instance, the daily active addresses for Dogecoin have risen from 66.49k to 89.92k, indicating heightened blockchain engagement and potential price appreciation.
Moreover, large transaction volumes have shown a notable increase, from 4.81 billion to 10.27 billion DOGE tokens, with the number of large transactions also rising from 956 to 1.1k.
Furthermore, the options volume for Dogecoin has surged by 576.95% to $86.78 million in the past 24 hours, suggesting a bullish sentiment among investors anticipating further price hikes.
Increasing Options Open Interest by 126.25% to $148.32k further supports the positive market sentiment when coupled with the rise in trading volumes.
In summary, Dogecoin is currently experiencing favorable market conditions and investor sentiment. If this trend continues, we may see DOGE break above the key level of $0.11105, potentially aiming for resistances at $0.128 and $0.134 in the short term.