Dogecoin After a significant decline caused by a broad market selloff, the past five days have seen a notable recovery. Cryptocurrencies have been experienced a sharp declineIt plunged 38% from $0.1348 to a low of $0.0831. However, DOGE showed resilience in the face of these challenges. After hitting the $0.0831 mark, the cryptocurrency began a remarkable comeback.
Over the past 5 days, DOGE bounced It has risen by about 25%, which is a significant price increase from its recent lows. This uptrend is not yet enough for holders to fully recover the losses incurred earlier this month, but it shows that positive momentum is back for DOGE.
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This partial price recovery was accompanied by a rebound in key market indicators, suggesting that investor sentiment towards Dogecoin is starting to turn bullish once again. Trading volumes are picking up, indicating renewed interest and participation in the market.
Dogecoin Key Indicators Fire Bullish Signals
According to Data from IntoTheBlockThis recovery was accompanied by a surge in daily volume, much of it an accumulation that increased buying pressure. At the time of writing, DOGE’s USD volume stands at an impressive $1.01 billion. This is a 54% increase from the 7-day low of $654.96 million recorded on August 3, just before the sharp decline began.
Interestingly, the high volume reached a peak of $1.52 billion on August 5th, which coincides with the start of the recovery. This correlation strongly suggests that large holders, often referred to as “whales,” were actively participating in the DOGE market during this recovery phase and driving the upward momentum.
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The large volume indicator does not show whether it is accumulating or selling, but the ratio of large holder net inflows to exchange net inflows suggests the former is true. This indicator tracks the balance between large holder accumulation and exchange inflows, providing valuable insight into the behavior of retail and whale investors. The ratio is currently tilted toward large holder accumulation, at 3.49% compared to minus 1.85% recorded on Monday, August 5th.
While whale activity is still ongoing, IntoTheBlock’s Bulls and Bears indicator suggests that the scales are starting to tip in the bulls’ favor. This indicator tracks addresses that have bought or sold more than 1% of the total volume over the past 24 hours, classifying them as bulls or bears, respectively. There has been a noticeable increase in bullish activity over the past two days, with 14 bulls and 13 bears in the most recent 24 hours. The margins may be tight, but having more bulls than bears indicates that buying interest is starting to outweigh selling pressure.
At the time of writing, DOGE is trading at $0.1045. A successful break above $0.11 could rekindle retail interest, which would then Contribute to the surge It’s approaching the expected $0.50 price range.
Featured image from iStock, charts from Tradingview.com