Dogecoin (DOGE), the leading dog-themed cryptocurrency by market cap, has recently experienced an impressive $1.09 billion in large transaction volume. This metric tracks the total amount transacted by major players, including whales and institutional investors, within a single day. A spike in Large Transaction Volume often signals heightened activity among these big players, whether they are buying or selling. In the past 24 hours, Dogecoin has seen transactions amounting to $1.09 billion, which translates to 8.61 billion Dogecoin.
Related article: 24-Hour Price Analysis: Dogecoin Sees Uptrend of 3.23%; Will Recent Gains Stick or Is a Correction Coming?
Bitcoin’s Dip Affects The Market
Meanwhile, Bitcoin plunged to around $65,000 during Tuesday’s trading session as traders reacted to potential news that the U.S. government might sell part of its vast cryptocurrency holdings. The U.S. Treasury has accumulated billions in seized cryptocurrencies through its crackdown on dark web marketplaces like Silk Road. This news contributed to the overall bearish sentiment in the market, impacting Dogecoin as well.
Related article: Dogecoin Shakes Off Slump, Bulls Defend Key Level
Dogecoin has not escaped the market downturn. Following four consecutive days of declines, the cryptocurrency attempted to bounce off its 50-day Simple Moving Average (SMA) at $0.123 in the early session today. This movement suggests that bulls are making an effort to turn this level into support. However, as of the latest update, Dogecoin is still experiencing losses. The price is down 3.16% in the last 24 hours, standing at $0.125, and it has decreased 5.42% over the past week.
DOGE/USD Daily Chart, Source: TradingView
Potential Price Movements
If the bulls manage to establish the 50-day SMA as a support level, Dogecoin might experience a relief rally targeting the daily SMA 200 at $0.134. Should this sustained breach occur, buyers might push the price above $0.14, potentially initiating an upward trend toward $0.18. Conversely, if Dogecoin bears succeed in driving the price below the crucial support level of $0.12, selling pressure could increase, leading to a possible decline to $0.10.
Dogecoin’s large transaction volume amidst a general market dip highlights significant activity by major players. The cryptocurrency’s price movements will depend heavily on whether bulls can maintain support levels or if bears will continue to drive prices down.
