- Dogecoin hit a double high at $0.13 and has lost 18% of its value since then.
- Despite an 18% market decline, DOGE was picked up by new holders.
- Whale activity remains at quarterly highs as whales reaccumulate.
Dogecoin (DOGE), the biggest meme token, has recently seen double-digit gains. The bullish momentum, initially sparked by the Federal Reserve’s (Fed) interest rate cut to 0.50%, was later strengthened by renewed interest from traders in meme coins.
New DOGE holders get in on the action
Dogecoin hit the local double top at $0.13 on September 28, 2024, but was rejected from this price barrier due to weak purchasing power. Moreover, Wednesday’s cryptocurrency market correction hit DOGE harder than expected as tensions in the Middle East spill over into cryptocurrency market sentiment.
Although this caused Dogecoin’s market value to fall by 10.7% in the last 24 hours, DOGE is now back at the pre-required support level between $0.101 and $0.107. This support bubble contains 11.73 million Dogecoin tokens split across 98.66K crypto addresses. The level of support could be crucial to a rebound as 72% of current holders stand to profit at this price.
DOGE’s upward trajectory could find fruitful help from the latest Dogecoin custodian. According to IntoTheBlock, newly registered DOGE wallets surged 72% in 7 days. For example, on the last day of September, when DOGE price hovered just below $0.12, 19.63K new cryptocurrency wallets were created on Dogecoin’s proof-of-work (PoW) blockchain.
Dogecoin’s Whale Isn’t Over Yet
To understand where the top dog meme coin is headed next, it’s important to gauge how its largest holders, known as cryptocurrency whales, have reacted to the harder-than-expected market correction. Before DOGE reached a local double top of $0.13 on September 28, 2024, the token embarked on its biggest whale activity since May, recording 1,203 whale transactions ahead of the milestone.
An increase in this indicator is logical during the period of local peaks, but even after successfully taking profits, the whales did not stop there. Santiment confirms that very high whale activity continues for four days up to the top of the area.
With 63,689,000 transactions over the past three days, Dogecoin retail cryptocurrency holders are potentially looking for the next step in the breakout. With major Dogecoin holders coming back for more, this is a favorable combination for a price breakout considering the largest holders are accumulating rather than distributing.
If you look at the 1-hour Dogecoin price chart, that’s exactly what you see. The Chaikin Money Flow (CMF) index rebounded from slightly negative values to 0.18, indicating new money flows into the token. At press time, DOGE is trading at $0.105 and is down 1.1% over the past hour.
On the flipside
- Dogecoin saw its highest ever inflow of $17.94 million into cryptocurrency exchanges on October 1, 2024, potentially indicating the intention of several major players to sell large amounts of DOGE.
Why This Matters
A wave of new Dogecoin holders could lead to increased adoption and deeper market liquidity, which is essential for the long-term survival of the largest PoW altcoin.
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