Key Takeaways
- The volatility present in a lot of cryptocurrencies comes with several perks.
- While some tilt toward the negative, others also fall on the positive side.
The volatility present in a lot of cryptocurrencies comes with several perks. While some tilt toward the negative, others also fall on the positive side. When there's a change in the price of any coin, it ripples into other situations around the token. The recent activity around DOGE stands as a good instance of this. Within the last eight hours, Dogecoin has increased by about 4% as the increased buying pressure from whales seems to be affecting the price of DOGE.
Read: Bitcoin miner profitability under threat as hash rate hits new all-time high
DOGE Whale Activity Picks Up Shortly After DOGE’s Price Gains 8+%
In light of the most recent data released by Santiment, this information breeds some form of enthusiasm in Dogecoin (DOGE) holders about the prospects for the price of the well-known meme token.
Yesterday evening, the blockchain analytics company tweeted that financing and transaction rates for DOGE whales had increased. These two measurements are excellent indicators of how the price of DOGE will vary.
This reality stemmed from the market capitalisation of all cryptocurrencies, which rose by 3.34% the previous day, bringing it back above the 945 billion dollar threshold. Altcoins grabbed the top spot in terms of market gains throughout this time. Mainly, XRP and Dogecoin were able to make profits following protracted price declines.
Relative to other cryptocurrency competitors, DOGE's 4.5% profits on the daily chart weren't very significant. The social anticipation among DOGE HODLers, nevertheless, increased as a result of changes in some long-term technical indicators and on-chain indicators.
With a projected market cap of $8,646,642,025, CoinMarketCap reports that DOGE is now the tenth-largest cryptocurrency by market cap. Furthermore, DOGE's price has increased significantly during the past 24 hours, rising 7.13% to $0.06505. This has improved the meme token's weekly output too.
DOGE Overcoming Perpetual Price Restrictions
Since September 13, the DOGE price has recorded lower lows on the daily chart. Before it, the meme token occasionally saw rises due to short-term bullishness or solid social anticipation of the broader market.
Following a recent protracted slump, DOGE made an inaugural higher low during the early trading hours of September 23, suggesting a turnaround from the 0.057 dollar support level.
After being rejected at the 0.065 dollar resistance, the Dogecoin price fell an extra 12% between September 3 and September 20. Dogecoin’s price collapsed by almost 30% in the latter part of August.
DOGE created a double bottom during the past week and broke through the critical 0.06 dollar resistance.
The Impact of Whales on DOGE
After a check was made into DOGE HODLers, revelations showed a 5.13% weekly rise in the number of addresses carrying 100 million to 1 billion DOGE.
Furthermore, roughly six new whales have signed onto the network despite enhancing technicals, snatching away about 620 million DOGE during that same time.
But while many see this move by DOGE whales as a way to help the meme coin, it didn't erase the remaining supply obstacles that DOGE would need to overcome before a reversal could be declared to be genuine.
IntoTheBlock's IOMAP reported that Dogecoin suffers from strong resistance at 0.069 dollars, where more than 86,000 addresses possess more than 42 billion DOGE despite widespread purchasing demand.
Likewise, when the price held steady near 0.061 dollars on shorter-term charts, DOGE's RSI began to show waning purchasing pressure.
An apparent daily closing over 0.069 dollars in the upcoming days could start a breakout. However, DOGE might return to the 0.057 dollar mark if the bears gain complete control.
Do you think there are other reasons behind this recent increase in DOGE’s price? Please share your views with us in the comments section.
