- Dogecoin price witnessed a sudden decline and posted 13% losses overnight.
- Large wallet investors sold Dogecoin at its peak of $0.87 and engaged in mass profit-taking activities on the DOGE network.
- 230 million Dogecoin tokens have been chained and bridged to Dogechain, as sentiment among holders turned bullish.
Dog-themed cryptocurrencies witnessed a decline in their price after profit-taking by large wallet investors since August 15, 2022. Data from Santiment reveals that large wallet investor activity in Dogecoin and Shiba Inu coincides with a peak in meme coin prices. Whales timed their exit and booked massive profits ahead of the current downtrend in Dogecoin and Shiba Inu.
The chart below explains how large volume transactions and whale activity coincides with the decline in Dogecoin price.
Whales timed their exit to take advantage of Dogecoin price hitting its $0.87 peak and their exit marked a correction in DOGE. The chart reveals a similar scenario occurred in SHIB where transactions valued at $100,000 or higher hit a peak when Shiba Inu’s price was $0.000018, right before its decline.
If Dogecoin price recoups its losses and breaks the resistance barrier at $0.082, the meme coin is likely to rebound. Dogechain’s launch and the possibility of 230 million DOGE being utilized in DeFi, dApps, and the NFT tokens have fueled a bullish sentiment among holders. An increase in demand for DOGE will likely push Dogecoin higher, acting as a trigger for a recovery in the meme coin.
Dogecoin’s next resistance is at $0.0753, on crossing this level the cryptocurrency is likely to recoup its losses and take a second swing at $0.087.
Dogechain, Dogecoin’s layer-2 scaling solution is not the only trigger to push DOGE higher. The spike in DOGE adoption and utility across merchants and payment processors is driving the cryptocurrency’s value higher in the long term. While proponents speculate whether Dogecoin will hit the bullish target of $1, the meme coin’s price is influenced by whale activity, rather than speculation. Whale activity and large volume transactions are currently the key drivers of Dogecoin’s price rally and are likely to fuel DOGE’s breakout of its multi-year downtrend.
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