The bull situation for Dogecoin is still very strong even though the coin has taken a huge hit over the past two weeks. A market reversal coupled with a high adoption rate for the meme coin could complete a 50% move to the upside in the short term.
Dogecoin whale transactions are on the rise
Last week, Dogecoin whales were waking up from their slumber. This came to a head on Sunday, May 28, when DOGE whale trades hit one of their highest levels. Data from IntoTheBlock shows that large DOGE transactions, meaning transactions holding at least $100,000 worth of coins, topped $1.94 billion in the past seven days.
As a result, the volume of Dogecoin has skyrocketed as well, crossing the $1 billion mark. This rapid rise in volume shows a willingness on the part of investors to get involved in the market again, which plays a bigger role in the bullish narrative of the meme coin.
Transaction volume is not the only Dogecoin metric that has also seen an increase in the past week. The number of DOGE transactions executed on the network has also skyrocketed, thanks to the popularity of BRC-20 tokens.
DOGE daily transactions cross 2 million | Source: BitInfoCharts
According to BitInfoCharts, the number of daily DOGE transactions has grown from an average of 20,000 at the beginning of May to 2.0777 million on May 27. This rise in the number of deals also explains the higher trading volume, as well as the growing bullish sentiment across the community as more network activity means higher demand for DOGE.
The dog may explode in the short term
As was the case with Bitcoin when the Ordinals and BRC-20 tokens gained popularity, driving up the price, DOGE can follow the same trend. If this happens, the price of Dogecoin may deviate from the general market trend and start a singular rally.
DOGE recovers above $0.073 | Source: DOGEUSD on TradingView.com
With already high trading volumes, such a single rally could send DOGE up to 50% higher than its current level. Moreover, investors are already recycling winnings from smaller meme coins like PEPE into DOGE, providing more protection for the digital assets.
If DOGE continues higher, its first major resistance is at $0.075 at this point. However, this resistance is not as strong as the resistance at $0.08, which will really determine whether the meme coin can rally up to 50%.
At the time of writing, DOGE was trading at $0.073, up 1.02% in the past day and 1.69% in the past week.