Dogecoin whales were buying, but will it be enough for the memecoin?
- Social sentiment around the memecoin turned bearish. Market indicators suggested that DOGE was testing a crucial resistance.
After a week of double-digit price drops, Dogecoin [DOGE] finally gained bullish momentum. The world’s largest memecoin witnessed a price rise. But will the trend continue further?
Dogecoin whales make a move!
Dogecoin has been somewhat turbulent over the last week as it witnessed major uptrend and downtrend. To be precise, as per CoinMarketCap, DOGE’s price dropped by over 13% in the past seven days.
However, the last 24 hours were in investors’ favor as the coin’s price increased by over 3%. At press time, the world’s largest memecoin was trading at $0.1077 with a market capitalization of over $15 billion.
The latest rise in price didn’t have a positive impact on the memecoin’s social metrics.
AMBCrypto’s analysis of Santiment’s data revealed that DOGE’s social dominance dropped over the last few days. This meant that investors were not talking about the memecoin.
Additionally, the coin’s weighted sentiment also dropped, suggesting that bearish sentiment around the coin increased in the recent past.
Source: Santiment
While this price fluctuation happened, Dogecoin whales made a move. Ali, a popular crypto analyst, recently posted a tweet highlighting a significant development.
As per the tweet, DOGE whales bought over 1 billion DOGE in the last 24 hours, totaling roughly $108.7 million. This indicated that the big players in the market were confident in the memecoin and were expecting its price to rise.
Is DOGE poised for a price hike soon?
Since there were chances of a price rise, AMBCrypto took a closer look at the world’s largest memecoin’s state to better understand whether metrics hinted at a bull rally.
Our analysis of IntoTheBlock’s data revealed that DOGE’s inflow dropped in the last few days. Whenever the metric drops, it means that selling pressure on an asset is dropping, which can be inferred as a bullish signal.
However, the rest of the metrics looked bearish on Dogecoin. For instance, DOGE’s MVRV ratio dropped sharply last week. Moreover, the memecoin’s velocity also declined. This meant that DOGE was used less often in transactions within a set timeframe.
Source: Santiment
Read Dogecoin [DOGE] Price Prediction 2024-2025
We then checked the memecoin’s daily chart. As per our analysis, DOGE was testing a resistance near its 20-day Simple Moving Average (SMA). This is a crucial test as a jump above that level could trigger a bull rally. However, in case of a failed test, DOGE might drop to $0.092.
Source: TradingView
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