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Due to an increase in transactions, Dogecoin’s on-chain data remains strong and the whales are on fire.
Santiment, a leading on-chain metrics provider, acknowledged that “on-chain activity shows that the whale is not completing the bullish momentum of crypto’s top meme coins.” Although they booked profits just before the all-time high, activity on DOGE’s network is still very high. ”
Source: Santiment
Address activity is also on the rise, with this metric reaching a seven-month high, given that 63,689 DOGE addresses transferred coins in just three days.
Meanwhile, whale trade surged to a four-month high, reaching a level of 1,203 whales.
Driven by market and technological dynamics, whales continually purchase DOGE based on the coin’s high volatility in search of speculative opportunities.
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Additionally, Dogecoin’s significant online community is likely to drive this trend, as prominent figures like Elon Musk add to Dogecoin’s strong social influence.
Is a Dogecoin explosion on the horizon?
Various factors paint a bullish picture for Dogecoin, including the existence of a bullish reversal that could cause a 50% price increase.
This is based on DOGE’s intensified efforts to break out of the falling wedge, which could mark the beginning of a new Dogecoin season with the top meme coin reaching the $1.6 zone.
Source: Trader Tardigrade
A descending wedge pattern forms whenever the distance between the upper and lower trend lines decreases over time, indicating a decrease in selling pressure.
This chart formation is bullish as it indicates a potential trend continuation or price reversal.
Additionally, there is a bullish divergence in the Dogecoin ecosystem as the Relative Strength Index (RSI) indicator has broken out of oversold territory even though the memecoin is trading below its 200-week moving average (MA). A sign is appearing.
Source: TradingView
Therefore, the bullish divergence further strengthens Dogecoin’s quest for uptrend reversal as the bearish momentum is weakening.
