Volatility has been the name of the game for memecoins in the past week, and Dogecoin [DOGE], the leading memecoin in terms of market cap, has not been immune to this trend.
Currently, DOGE is being traded at $0.1076, reflecting an 8.87% decline in its weekly performance and extending the bearish trend by 5.24% over the last 24 hours.
Prior to this downward movement, DOGE had been on an upward trajectory, showing a 12.35% increase on a monthly basis.
Following a peak at $0.132, the memecoin struggled to maintain its momentum, eventually, hitting a low of $0.101.
Despite this recent dip, the overall market sentiment indicates that Dogecoin might be gearing up for a rally.
Accumulation of 2.07 Billion DOGE by Holders
Although the price of DOGE has been on a decline, holders have been consistently accumulating the digital asset.
Reports indicate that Dogecoin holders have acquired a total of 2.07 billion tokens over the course of the last week.
This accumulation signifies that investors are taking advantage of the recent price drop, anticipating further declines. This increased accumulation has coincided with higher trading volumes in the past 24 hours.
According to data from CoinMarketCap, trading volume has surged by 32.8% to reach $810 million over the previous 24 hours.
Historically, when Dogecoin holders amassed such a significant number of tokens in January 2024, the memecoin saw a remarkable surge from $0.074 to $0.209, representing a staggering 182.43% increase!
If history repeats itself, it could imply that DOGE is on the verge of experiencing another significant surge in the near future.
Analysis of DOGE’s Performance
Looking at DOGE’s current market conditions, there seems to be a potential for further price gains on the horizon.
For example, the daily active addresses for Dogecoin have increased from a low of 66.49k to 89.92k, indicating a growing level of engagement with the blockchain network and hinting at potential price appreciation in the future.
Moreover, the volume of large transactions has risen from 4.81 billion to 10.27 billion DOGE tokens, accompanied by an increase in the number of large transactions from 956 to 1.1k.
Additionally, the options volume for Dogecoin has surged by an impressive 576.95% to $86.78 million within the last 24 hours. This surge suggests a bullish sentiment among investors who are anticipating further price increases.
This bullish sentiment is further supported by a significant increase in Options Open Interest by 126.25% to $148.32k. A rise in both volume and Open Interest typically signifies positive market sentiment.
In summary, Dogecoin is currently experiencing favorable market conditions and investor sentiment. If these conditions persist, DOGE could potentially break through the key level of $0.11105.
A successful breakout above this level could propel Dogecoin towards testing the $0.128 resistance in the short term, and in an exceptionally bullish scenario, the memecoin could target $0.134.