Dogecoin price rebounded to a high of $0.1249 over the past 24 hours, experiencing 13% volatility. Analysts pointed to Tesla’s Bitcoin whale transfer as the main catalyst for the rise in DOGE prices.
Dogecoin (DOGE) performance
Dogecoin (DOGE) has moved upwards by about 13% over the past 24 hours, from a low of $0.1105 to a high of $0.1249. As of 9am UTC on Wednesday, the token had settled around the $0.12 range, allowing it to lock in more than 7% of its gains on the daily chart.
A surge in investor interest sustained DOGE’s latest price action. Within the same period, meme coin trading volume surged by more than 72% as $1.78 billion worth of tokens moved between exchanges.
With these developments, the market capitalization of the circulating supply of crypto assets of 146.39 billion dollars has reached $18.5 billion. All of this has shown a significant improvement in liquidity, with its volume/market capitalization ratio reaching over 9%.
DOGE is also showing a bullish trajectory along the longer time frame. At this pace, you’ll increase by about 16% per week, 24% per month, and 111% per year.
Despite DOGE’s current US dollar value, which has increased significantly, it is still a long way from its all-time high of $0.7376 three years ago. Tesla CEO Elon Musk’s beloved meme coin is currently trading 83% below its historic high.
Tesla sparks bullish sentiment
Speaking of Tesla, the company’s decision to move its Bitcoin (BTC) reserves may have been the main catalyst for DOGE’s recent rally. According to Spot On Chain, the electric vehicle (EV) maker has just moved all of its Bitcoin holdings (11,509 BTC) to seven new cryptocurrency wallet addresses.
What’s interesting is that the funds, which were valued at more than $770 million during the transfer period, remained dormant for about two years. This occurred in 26 separate transactions, including 6 test transfers.
Tesla has remained silent about its decision to spread its BTC reserves across multiple wallets. Therefore, there was a lot of speculation on this issue.
Optimistic analysts saw this as a sign that Tesla would simply strengthen the security of its Bitcoin holdings. Others raised the idea that the company may be reorganizing its holdings for custody reasons.
As a result, the positive outlook sent Bitcoin soaring from $64,000 in mid-week to a nearly one-month high of about $67,000. Meanwhile, crypto market sentiment has surged again, returning to the “Greed” level on the 73 scale of the Fear & Greed Index.
On the other hand, pessimists saw this as a red flag and suggested that EV makers may be preparing to release BTC to the market. This is very useful from a business perspective when a company needs funds to buy back its own shares to increase control, or to reduce its shares to increase the value of the remaining shares. makes sense. Additionally, it could potentially inject that cash into other investments or projects.
