Dogecoin’s network has witnessed a sharp uptick in large transactions, signaling increased activity among major holders. Crypto analyst Ali reported that Dogecoin transactions exceeding $1 million surged to 588 within 24 hours. These substantial movements, often carried out by whales, usually precede strategic actions like accumulation, selling, or redistributing funds. One noteworthy transfer highlighted by blockchain tracker Whale Alert involved 400 million DOGE, valued at approximately $137.8 million, moving from an unknown wallet to Binance.
Broader Market Trends and Speculation
The overall cryptocurrency market recently displayed bullish momentum, pushing multiple assets higher. However, profit-taking followed, leading to a mixed performance. Dogecoin’s surge in large transactions could align with broader market dynamics, although specific reasons for the spike remain speculative.
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Adding to the intrigue, Dogecoin saw an 11% price jump within an hour. This rally coincided with reports that Elon Musk’s Department of Government Efficiency launched its website featuring the Dogecoin logo. Dogecoin graphic designer “dogedesigner” tweeted, “Department of Government Efficiency’s official website has a dogecoin on it.”
At the time of writing, DOGE had climbed 2.3% in the last 24 hours, trading at $0.381 after hitting intraday highs of $0.401.
Price Movements and Resistance Levels
Dogecoin’s price recently rebounded after a three-day decline from its $0.434 peak on January 18. The recovery pushed DOGE above the 50-day Simple Moving Average (SMA) of $0.367.
24 hours price chart- source: CoinMarketCap
Analysts believe breaking above the $0.434 resistance could fuel a rally toward $0.48. However, sellers are expected to strongly defend the $0.48 level. A breach beyond this point might drive Dogecoin’s price to $0.59.
Related article: Dogecoin Sees Sharp 28% Rise with Whales Leading the Charge
In contrast, failure to maintain its position above the daily SMA 50 could lead DOGE to drop to $0.31 and potentially further to $0.27. For now, market watchers remain focused on whether Dogecoin can sustain its current upward trajectory.
This activity highlights the growing influence of whales and market speculation on Dogecoin’s performance. Investors are closely monitoring the cryptocurrency’s next moves.
