Dogecoin (DOGE), known for its meme origins, has recently experienced a notable increase in activity from significant investors, often referred to as ‘whales.’
According to data from IntoTheBlock, the value of substantial transactions has nearly doubled in the last 24 hours, reflecting heightened investor engagement.
Data shows that the value of large Dogecoin transactions exceeding $100,000 has surged from $1.53 billion to about $3.01 billion within the last 24 hours. Simultaneously, the amount of DOGE moved by these whales rose from 9.74 billion to 17.97 billion DOGE.
Large transactions Volume. Source: IntoTheBlock
In a surprising turn, a dormant Dogecoin whale, holding 893,303 DOGE (around $145,101), became active on May 22 after more than ten years of inactivity.
? A dormant address containing 893,303 #DOGE (147,524 USD) has just been activated after 10.4 years!https://t.co/iUi27LPA3b
— Whale Alert (@whale_alert) May 22, 2024The whale conducted its first transaction since May 2014, transferring 23,338 DOGE, worth approximately $4,000, to Binance, the largest cryptocurrency exchange globally.
Despite this transfer, the whale still possesses 869,964 DOGE, valued at about $140,334
Transaction details. Source: blockchair
The reactivation of this long-dormant whale has raised concerns about its impact on Dogecoin’s price movement.
Historically, when early cryptocurrency holders re-engage with the market, significant price fluctuations often follow. The recent transfer to Binance hints that the whale might be considering selling some of its holdings.
Historical context and market impact
This recent reactivation is not an isolated incident. Earlier in May, another Dogecoin whale transferred $60 million worth of DOGE to Robinhood. Additionally, on May 21, Whale Alert reported a major transaction involving 600 million DOGE, valued at about $100 million, transferred between two unknown wallet addresses.
The uptick in whale activity suggests growing interest and engagement among large investors, which could potentially influence DOGE’s market dynamics in the near future.
Dogecoin price analysis
DOGE 7-day price chart. Source: Finbold
Dogecoin (DOGE) is currently trading at $0.16, marking a 24-hour decrease of 3.24%. Despite this dip, Coinglass data indicates heightened investor interest, with DOGE’s open interest (OI) rising by 27.05% to $1.05 billion on May 22 and trading volume surging to $3.73 billion.
Analysts have identified a symmetrical triangle pattern in Dogecoin’s chart, presenting a key resistance at $0.1545. Support remains strong around $0.1513, bolstered by the 50-day exponential moving average (EMA).
The current price above the 50 EMA signals a bullish bias, while the Relative Strength Index (RSI) above 50 supports a buying trend.
Despite Dogecoin’s recent price dip, increased investor activity and positive technical indicators suggest a potential upward trend. Investors should monitor for a breakout above the $0.1595 resistance level to confirm continued bullish momentum.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
