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Dogecoin price saw a significant decline this week, sliding more than 20% at times, from a high of $0.1321 on Saturday to a low of $0.1026 on Tuesday. Despite this decline, on-chain metrics and expert analysis suggest a potentially bullish future for the popular meme coin.
Dogecoin price remains bullish
On-chain analytics firm Santiment today provided a detailed breakdown of Dogecoin activity through X, indicating heavy participation by large-scale holders, known as whales, in the cryptocurrency’s network . “Dogecoin has retraced -18% since its peak on Saturday. But on-chain activity indicates that whales may not be done with all the bullish momentum in the leading crypto coin. Although they took profits just before the summit, their activity remains very high on the DOGE network,” Santiment reported.
The analytics firm also highlighted an increase in Dogecoin’s network activity, noting that Dogecoin just hit a 7-month high in address activity and a 4-month high in address transactions. whales, while retail transactions surged following the price drop.
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Over the past three days, 63,689 DOGE addresses have transferred coins, which is the largest streak since April 2-4. Additionally, 1,203 whale transactions (>$100,000) preceded Dogecoin’s local price peak on September 28. This is the highest whale activity since May 26-28.
Crypto analyst Ali Martinez highlighted the massive activity within the network via X. Martinez said: “The Dogecoin network is experiencing significant growth! Over the past week, there has been a 72% increase in new DOGE addresses, and just yesterday, 19,630 new DOGE addresses were created!
The crypto analyst further strengthens the bullish sentiment around Dogecoin with technical analysis. Martinez points out that DOGE could be approaching a bullish MACD crossover on the weekly chart, a potential indicator of upcoming price increases. “The last two times Dogecoin DOGE saw a bullish MACD crossover on the weekly chart, it increased by 90% and 180%, respectively. A new bullish MACD crossover could form soon! » he explained.
The MACD, or Moving Average Convergence Divergence, is a crucial tool in technical analysis. It consists of two lines: the MACD line, which is the difference between the 26- and 12-period exponential moving averages (EMA), and the signal line, which is the 9-period EMA of the MACD line. A bullish crossover, where the MACD line crosses above the signal line, generally signals a shift from a downtrend to an uptrend in the market, often interpreted as a buy signal.
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Luciano, another renowned crypto analyst, highlighted a breakout of a descending channel on the daily chart. He advises his 2.2 million followers on X: “DOGE has had a decent run lately and it looks like it will continue. In my opinion, the dips are worth buying and DOGE will have a spectacular season this cycle. DYOR – NAFA”
At press time, DOGE was trading at $0.1087.
Featured image created with DALL.E, chart from TradingView.com
