Dogecoin's Remarkable Surge Outshines Major Cryptocurrencies
Last week marked a significant milestone for Dogecoin (DOGE), the popular meme coin, as it experienced a remarkable price surge, successfully surpassing the $0.22 price level, a feat not seen since November 2021. The dramatic 33% increase in DOGE's price outperformed Bitcoin and other large market-cap cryptocurrencies, drawing significant attention from investors and traders alike.
The surge in DOGE's price was primarily fueled by increasing activity among crypto whales, as highlighted by on-chain data. This pool of influential traders has shown a notable uptick in accumulation, purchasing approximately 1.40 billion DOGE, valued around $280 million over the past two weeks, marking a significant trading milestone.
Crypto analysts have pointed out an interesting trend: whale wallets holding between 10 million to 100 million DOGE have been consistently expanding their holdings since March 15. This accumulation trend led these whales to augment their total holdings by 1.40 billion DOGE, reaching an impressive 16.7 billion DOGE.
It's worth mentioning that this accumulation, amounting to approximately $280 million, is the most substantial recorded in a two-week timeframe since Dogecoin gained mainstream popularity during the 2021 bull market.
What's on the Horizon for Dogecoin?
As DOGE witnessed an increase in whale accumulation, it correspondingly saw a rise in price. This is a common occurrence among cryptocurrencies, where significant movements by crypto whales have the potential to sway the market direction. Concurrently, Dogecoin experienced a surge in open interest, setting a new record of $2.2 billion.
While DOGE has retraced by 7% since hitting the $0.22 price level, it remains up by 18.9% over the past week. According to CoinMarketCap, DOGE is currently trading at $0.2064 with a market capitalization of $29.6 billion. The continued activity by whales could potentially spearhead another price increase for Dogecoin in the upcoming week.
With fresh investments and significant acquisitions by whales, Dogecoin's short-term outlook appears promising. Various indicators suggest DOGE could reach the $1 mark during the current bull market phase. However, it now faces crucial resistance at $0.22. A successful breakout above this level could clear the path to $0.35, a critical milestone for many investors.
Data from IntoTheBlock indicates approximately 602,000 addresses purchased DOGE at an average of $0.35 and are presently awaiting to break even. This price level remains pivotal as a potential sell-off could ensue from some of these addresses upon reaching a break-even point.
Dogecoin's recent ascent has not only captivated the crypto community but also underscored the significant impact of whale activity on market dynamics. As the meme coin navigates through resistance levels and anticipates further accumulation by whales, the crypto market is keenly observing DOGE’s next moves.
Analyst comment
Positive news: Dogecoin’s remarkable surge and outperforming major cryptocurrencies, drawing attention from investors and traders. Increasing activity among crypto whales with significant accumulation indicates a promising short-term outlook for Dogecoin. The potential for Dogecoin to reach $1 mark during the current bull market phase. However, it faces resistance at $0.22 and a sell-off could occur at the break-even point of $0.35 for some addresses. Whales’ activity and market dynamics are closely watched.
