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The price of Dogecoin saw a significant decline this week, falling more than 20% at times, from a peak of $0.1321 on Saturday to a low of $0.1026 by Tuesday. Despite this decline, on-chain metrics and expert analysis point to a potentially bullish future for the popular meme coin.
Dogecoin price remains bullish
Cross-chain analytics company Santiment did just that available A detailed analysis of Dogecoin activity across X today, indicating strong participation from large-scale cryptocurrency holders, known as whales, in the cryptocurrency network. “Dogecoin is down -18% from its high on Saturday. But on-chain activity suggests that whales may not be done with all the bullish momentum for the top meme cryptocurrency. Although they took profits just before the top, their activity is not… It is still very high on the DOGE network,” Santiment said.
The analytics firm also highlighted the increase in Dogecoin network activity, noting that Dogecoin just reached a 7-month high in address activity and a 4-month high in whale transactions while retail transactions jumped due to lower prices.
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Over the past three days, 63,689 DOGE addresses transferred coins, marking the largest stretch since April 2-4. Furthermore, 1,203 whale transactions (>$100,000) preceded the local Dogecoin price high on September 28. This represents the highest whale activity since May 26-28.
Cryptocurrency analyst Ali Martinez highlighted the massive activity within the network via X. Martinez stated: “The Dogecoin network is experiencing significant growth! Over the past week, there has been a 72% increase in new DOGE addresses, and just yesterday, 19,630 new DOGE addresses were created!”
Cryptocurrency analyst reinforces bullish sentiment surrounding Dogecoin with technical analysis. Martinez Pointing DOGE may be approaching a bullish MACD crossover on the weekly chart, which is a possible indicator of upcoming price increases. “The last two times, Dogecoin DOGE saw a bullish MACD crossover on the weekly chart, rising 90% and 180% respectively. A new MACD bullish crossover may be forming soon!” he explained.
MACD, or Moving Average Convergence and Divergence, is a crucial tool in technical analysis. It consists of two lines: the MACD line, which is the difference between the 26-period and 12-period exponential moving averages (EMAs), and the signal line, which is the 9-period EMA of the MACD line. A bullish crossover, where the MACD line crosses above the signal line, usually indicates a shift from a downtrend to an uptrend for the market, and is often interpreted as a buy signal.
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Another famous cryptocurrency analyst, Luciano, did just that He pointed out To break the descending channel on the daily chart. He advises his 2.2 million followers on
At press time, DOGE was trading at $0.1087.
Featured image created with DALL.E, a chart from TradingView.com
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