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03 October, 2024

Dogecoin’s On-Chain Surge: A 180% Price Rally in the Works?

03 October, 2024

Dogecoin’s On-Chain Activity Ignites Hope for a Price Surge

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Despite recent market corrections and geopolitical tensions, Dogecoin (DOGE) continues to attract attention from both whales and retail investors. Data from Santiment reveals a significant increase in whale transactions, reaching new highs since June. Before the price peak on September 28, these major investors executed over 1,203 transactions worth more than $10 million. This activity suggests that, even amidst market negativity, key players within the Dogecoin ecosystem maintain optimism.

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Further evidence of bullish sentiment comes from a surge in active addresses on the Dogecoin network. A staggering 63,689 DOGE addresses have exchanged tokens in the past three days, marking the highest figure in six months. This level of activity echoes the early days of April, indicating strong retail interest in the meme coin.

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While Dogecoin has retraced 18% from its recent peak, on-chain activity indicates that whales may not be done with their bullish momentum. Although they took profits shortly before the peak, their activity on DOGE’s network remains exceptionally high.

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🐶 Dogecoin has retraced -18% from its top back on Saturday. But on-chain activity indicates that whales may not be done with all the bullish momentum of crypto’s top meme coin. Though they took profit just before the top, their activity remains very high on DOGE’s network. pic.twitter.com/FsmWJGkSE6

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Growing Adoption Fuels Potential Rally

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This on-chain activity surge isn’t a mere blip on the radar. Analyst Ali Martinez has identified a promising indicator on the Dogecoin weekly chart, suggesting a potential price rally. He highlights a bullish MACD crossover that could lead to a 180% increase in the price of DOGE. Notably, on the two previous occasions when this metric shifted into bullish territory, Dogecoin experienced an astronomical 85% surge in October 2023 and a whopping 175% gain in February 2024. If history repeats itself, Dogecoin could be poised for significant growth.

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However, it’s essential to acknowledge that the overall market sentiment for Dogecoin remains bearish, according to CoinCodex’s latest price predictions. Their analysis suggests DOGE could decline by 13%, reaching around $0.091695 by November 2, 2024. The Fear & Greed Index currently stands at 37, placing trader sentiment firmly in the worry zone. Over the past 30 days, Dogecoin has seen 16 green days (53% of the time), with an average price volatility of 8.15%. This volatility indicates Dogecoin’s sensitivity to market fluctuations.

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Navigating Uncertainty in the Market

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Given these mixed signals, traders and investors are advised to proceed with caution. While increased whale activity and retail interest point to underlying demand for Dogecoin, one cannot ignore the negative sentiment and potential price drop. The current market volatility poses risks for new investors entering the market at this time. Whether Dogecoin can stabilize or continue its downward trend in the coming weeks will largely depend on its ability to hold key support levels.

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Featured image from Vecteezy, chart from TradingView