After experiencing a month-long surge during which Dogecoin [DOGE] surged by 131.22%, its upward momentum has decelerated in the last week. During this timeframe, the cryptocurrency observed moderate yet positive growth of 3.27% over the week and 1.87% within the last 24 hours.
These developments indicate a lingering bullish sentiment as investors opt for accumulation, a strategy characterized by increased buying activity in anticipation of a potential breakout.
This conduct supports the theory put forth by CryptoCrypto, anticipating a significant price movement in the near future.
DOGE Records a Substantial Increase in Large Transactions
Over the past day, Dogecoin has witnessed a notable uptick in large transactions, surpassing previous records from recent years and hitting its highest levels in the last week.
Based on data from IntoTheBlock, the transaction volume surged to 60.9 billion DOGE, equivalent to $23.35 billion, driven by an impressive 9,410 large transactions during this period.
Large transactions typically involve market participants holding at least 1% of the asset’s total supply.
These actors, commonly known as whales, wield significant influence over market trends, capable of sparking either uptrends or downtrends.
Connection with BTC
Dogecoin has exhibited a strong correlation with Bitcoin, the leading cryptocurrency by market capitalization of $1.97 trillion, as per CoinMarketCap data at the time of writing.
This correlation, calculated at 0.97, signifies that DOGE closely mirrors the price movements of BTC. With Bitcoin recently hitting a record high of $104,000 and expected to witness further gains in upcoming trading sessions, this correlation could positively influence Dogecoin’s price trajectory.
Moreover, the holding time for transacted Dogecoin has surged, with a 301.99% increase over the past seven days and a 526.74% uptick over 90 days, resulting in an average holding duration of roughly four months.
This trend indicates that the recent accumulation by larger traders showcases growing confidence in Dogecoin as a long-term investment.
These recent buyers, identified as whales by CryptoCrypto, are willing to keep their positions for about four months. Intriguingly, the 30-day holding metric varies, displaying an average holding period of two months before resuming trading activities.
What Lies Ahead for DOGE?
A technical analysis of Dogecoin suggests the possibility of a substantial 81.08% increase, potentially reaching $0.84. This forecast aligns with DOGE’s current position within an accumulation phase on the chart.
This accumulation phase is marked by a horizontal resistance level and a converging diagonal support. Historically, after such patterns follow a robust upward rally, there is a high likelihood of the asset replicating its previous upward momentum.
If this scenario unfolds, the meme-inspired coin could witness a breakout in the upcoming trading sessions, fueled by market whales.
Upon breaching the accumulation phase, the anticipated rally might materialize, propelling the price to new records.