Dogecoin [DOGE] to rise beyond 40%? Whale activity may spur rally
- Dogecoin recently saw an increase in whale transactions.
- The dog-themed token has also recently seen a spike in its daily active addresses.
Whale activity has increased for Dogecoin [DOGE], which is also the ninth-largest cryptocurrency by market capitalization, according to CoinMarketCap. Whales’ action boosted the token price and impacted some other indicators as well.
Read Dogecoin’s [DOGE] Price Prediction 2023-24
Whales taking DOGE for a swim
According to Santiment on 31 January, the transaction count for whales rose.
🐶 #Dogecoin has broken out with major whale transactions today, easily the highest of the year, going along with address activity spiking. The polarizing coin is up +40% since December 29th, and is back above $0.095 for the first time since December 10th. https://t.co/NjeLyhFKe2 pic.twitter.com/AWEOtqD1ax
— Santiment (@santimentfeed) January 31, 2023
Addresses involved in the whales’ transactions exchanged more than $100,000 worth of DOGE tokens. As of this writing, there were over 70 trades for more than $100,000. However, the previous day saw about 300 whale transactions – a record-high number.
The fact that whales moved this much for the first time in over a month—aside from one day in December—made these trades noteworthy.
Why have the whales suddenly come out to play?
Possible reasons for increased whale activity
If previous AMB Crypto reports are any indication, there may be a rationale behind these massive exchanges. Reportedly, Twitter has already started seeking regulatory licenses across the United States and creating the software needed to implement payments across the social media network.
It was mentioned in the report that fiat would be used first and that cryptocurrency integration would come later. The positive outlook of the Dogecoin community has been boosted, which may have influenced whales’ behavior.
Daily Active Address spikes as price see a slight drop
The Daily Active Address was another indicator that brought attention to the Dogecoin network. According to statistics provided by Santiment, the metric had seen an increase in the preceding 48 hours, bringing it up to the same level as it had been in November, which was its previous high point.
As of this writing, the figure had surpassed 44,000, with more than 91,000 active addresses recorded the day before.
When viewed on a daily timeline, the price of Dogecoin was found to be fluctuating around $0.09. The previous appearance of the price range was in December 2022.
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In addition, its value had decreased by about 4% during the trading time, which was observed after having increased by more than 8% during the previous trading period.
The Relative Strength Index shows that despite its surge, which has seen a 40% gain since December, Dogecoin has never crossed into the oversold region (RSI). An examination of the RSI revealed that DOGE was in a bull run due to the recent rally. However, it remained below the oversold line, suggesting that a price correction may not be on the horizon.