- Dogecoin price lost momentum after a massive rally in response to news of Elon Musk’s purchase of Twitter.
- The dog-themed crypto has sustained above the $0.063 level and yielded 10% gains over the past two weeks.
- Dogecoin trade volume exploded by 400% and ranked in the top ten cryptocurrencies by market capitalization.
Elon Musk, the CEO of Tesla Motors, brought the Twitter deal back to the table. The news of Musk’s interest in purchasing Twitter fueled a rally in the largest meme coin, DOGE. Elon Musk is a self-proclaimed Dogefather and a proponent of the meme coin.
According to an October 4 securities filing, Musk declared his intentions to follow through with his purchase of Twitter and tweeted about the same. This act fueled a bullish sentiment among Dogecoin holders, and the trade volume of the meme coin exploded.
Spike in trade volume and whale transactions are two indicators of a bullish trend reversal in a cryptocurrency. Data from Santiment revealed a surge in large-volume transactions on Dogecoin. With upwards of $800 million in trade volume, Dogecoin ranks in the top 10 cryptocurrencies.
Dogecoin’s price trend reversed, and the asset witnessed a decline after its bullish momentum ended. While the Dogecoin price has sustained above the $0.063 level, the meme coin nosedived from the 24-hour of $0.66.
The spike in whale transactions coincided with a local top in Dogecoin price. Analysts at Santiment identified the local top as where funding rates went ultra-long, and whales moved over 449 million DOGE.
Despite the trend reversal, analysts remain bullish on the meme coin in the bear market. Commission-less trading platform Robinhood is holding 40.95 billion DOGE worth $2.4 billion on behalf of its investors. This represents 30.87% of Dogecoin’s circulating supply.
Based on the chart above, the massive spike in trade volume represents the most action that DOGE witnessed over the past week. DOGE/BTC price chart reveals that the Shiba Inu competitor rallies once every 30 weeks. 26 weeks have passed since the previous bullish breakout in DOGE/BTC, and Dogecoin is closer to another upswing in the next four weeks.
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