Los Angeles, California – The recent surge in large transactions and trading volume for DOGE has caught the attention of investors, with the cryptocurrency reaching its highest levels in the past week. Following a month-long rally where Dogecoin climbed over 130%, its upward momentum has slightly slowed down in the last week. Despite this, the asset still managed to record modest gains of 3.27% over the week and 1.87% in the last 24 hours.
These developments suggest a continued bullish sentiment among investors, as they engage in accumulation strategies by increasing their buying activity in anticipation of a potential breakout. Analysts at AMBCrypto believe that this behavior indicates a significant price move could be on the horizon.
The surge in large transactions for DOGE has been particularly notable in the last 24 hours, reaching record levels and exceeding previous highs from recent years. Data from IntoTheBlock shows that transaction volume spiked to 60.9 billion DOGE, equivalent to $23.35 billion, driven by a staggering 9,410 large transactions during this period.
Large transactions, typically carried out by market participants holding at least 1% of the asset’s supply, play a crucial role in influencing market trends by potentially triggering rallies or declines. The strong correlation between DOGE and Bitcoin, the cryptocurrency with the largest market cap, indicates that DOGE’s price movements closely mirror those of Bitcoin.
Recent data also shows a significant increase in the holding time for transacted DOGE, with a 301.99% increase over the last seven days and a 526.74% increase over the last 90 days, pushing the average holding duration to around four months. This uptrend in accumulation by larger traders reflects a growing confidence in DOGE as a long-term investment.
Additionally, a technical analysis of DOGE suggests a potential gain of 81.08%, with the asset possibly reaching $0.84 in the near future. This projection aligns with DOGE’s current position in an accumulation phase on the chart, characterized by a horizontal resistance level and a converging diagonal support. If this pattern follows a strong upward rally as seen historically, there is a high probability that DOGE will replicate its previous upward momentum.
As market whales drive the anticipated breakout in the upcoming trading sessions, DOGE could experience a rally once the accumulation phase is breached, potentially pushing the price to new heights. The future outlook for DOGE remains positive as investors closely monitor its price movements and market trends.
