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Dogecoin (DOGE) has faced price volatility lately, and the coin has not found stability above the $0.27 level. In the last seven days, DOGE's price breached the $0.265 mark only once but found no boost to sustain this upward move. This is despite a recent surge in DOGE trading volume.
Key on-chain indicators supporting DOGE rebound
However, Ali Martinez, an on-chain analyst, believes the tide might change in favor of Dogecoin investors soon. In an update he shared, Martinez noted that daily active addresses, transactions and whale movements are all flashing bullish signals for DOGE.
Arman ShirinyanHe maintained that a surge in these three metrics for DOGE could signal renewed interest and upward momentum for the asset. Martinez suggests that these metrics are currently stable, but a spike in activity could trigger a price increase.
Notably, a rise in the number of unique wallet addresses interacting with DOGE daily can provide insights into user engagement. A spike in this figure might translate to a positive impact on price.
Martinez’s prediction aligns with data from Santiment, which shows a correlation between DOGE’s price and active addresses.
For instance, in November 2024, when DOGE’s price was $0.4284, the daily transacting addresses were in the 1.49 million range. This has plummeted to 73,334, with a corresponding decline in price. However, this decline has faded over the past week, with stability recorded on-chain.
Similarly, the volume of DOGE transactions suggests growing demand and usage. Meanwhile, the activities of large holders can signal different messages to investors on the market. When whales move funds, it can suggest possible buying or selling pressure.
Will whales support DOGE regaining momentum?
Tomiwabold OlajideHowever, as reported by U.Today, Dogecoin whales have gone silent, and transactions from these large holders have dried up recently. Compared to November 2024, current transactions have dropped to less than one-third of their volume. A reentry could trigger positive price movement for DOGE.
If this happens and investors betting on DOGE Open Interest continue to rise, a shift in price could occur.
Denys Serhiichuk
Tomiwabold Olajide
Dan Burgin
Vladislav Sopov