According to on-chain analytics, the next strong Dogecoin rally might be closer than we think. The meme token has given traders mixed signals over the past month, but signs such as on-chain trading volume and DOGE’s mission to the moon are beginning to indicate that the next wave is fast approaching.
Although the majority of cryptocurrencies are in the red over the past 24 hours as consolidation and modest selling continues, Doge managed to record a gain of 6.87%.
Dogecoin trading volume spikes
Price data from Coinmarketcap shows that the crypto only rose 19.7% from its October low of $0.0579 to end the month at $0.069. However, things changed in early November, when the bulls and whales began to inject capital into cryptocurrency. This influx pushed the cryptocurrency above the strong support of $0.76.
According to crypto analyst Rekt Capital, this the escape was the beginning of a trend change, peaking towards a $0.15 price target currently forming.
Various on-chain monitors reveal that on-chain transactions have increased at the same time. According to on-chain analytics platform Santiment, Dogecoin reached a total trading volume of $665 million yesterday, its highest level in three months. Data from Coinmarketcap also puts the total trading volume over the past 24 hours at $1.83 billion, an increase of more than 240% from the previous day.
🐶 #Dogecoin experienced a modest increase of +5% in an essentially flat market #crypto market day. It was helped by $665 million in #onchain transaction volume, its highest level in 3 months. There is also a notable amount of $DOGE long positions open as traders bet on rising prices. https://t.co/uFgCCIxih0 pic.twitter.com/DussxIPJN2
– Santiment (@santimentfeed) November 16, 2023
Dogecoin the numbers of millionaires are currently decreasing, But that hasn’t stopped the whales’ activities, as large transactions increased last week amid a sharper market pullback. IntoTheBlock’s large on-chain transaction metrics show that DOGE’s large on-chain transactions totaled $1.37 billion over the past 24 hours, an increase of 69% from the previous day.
Most of this increased trading activity can be linked to the growing enthusiasm within the Dogecoin community around robotics company Astrobotic. launch of a physical Dogecoin token to the moon in December. For a token whose price depends largely on hype and enthusiasm, the anticipation and realization of this moon mission could very well spark a sustained uptrend for Dogecoin.
Popular trading platform Robinhood was also a major factor in this surge in large trading volume. A series of large-scale transactions linked to Robinhood began on November 7, when it received a transfer of 250 million DOGE, worth around $18.9 million at the time. Other notable transfers include a $10.6 million transfer of DOGE from Robinhood to an unknown wallet and a transfer of 690 million DOGE between two private wallets.
According to whale transaction tracker Whale Alerts, 375 million DOGE worth approximately $30.3 million was recently transferred to Robinhood.
– Whale Alert (@whale_alert) November 17, 2023
DOGE bulls take control | Source: DOGEUSD on Tradingview.com
Featured image from CNET, chart from Tradingview.com