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According to IntoTheBlock data, more than 350,000 addresses previously purchased nearly 64 billion DOGE at an average price of $0.092.
The largest dog-themed cryptocurrency, Dogecoin, wowed the crypto market with its impressive rally at the close of Oct. On Nov. 2, after hitting a high of $0.158, the price of DOGE found itself 185% higher than the levels it had been trading at throughout the summer.
#Dogecoin | More than 350,000 addresses previously purchased nearly 64 billion $DOGE at an average price of $0.092, providing a stable and stiff support floor for #DOGE. pic.twitter.com/J6iHrSpvSQ
— Ali (@ali_charts) November 2, 2022
The significant increase was attributed to the enthusiasm around Elon Musk's takeover of Twitter. Musk has long been a proponent of Dogecoin.
Much was the excitement as a dormant address containing 2,374,814 DOGE valued at $338,611 came back to life after over eight years.
At the time of writing, Dogecoin was trading marginally higher at $0.133. Investors took profits after the price rose to a high of $0.1589, causing a drop to $0.122 on Nov. 2. Investors swiftly bought the dip with a current recovery to intraday highs of $0.1370 at press time. A break above the $0.1589 barrier could kickstart the next leg of the uptrend. On the other hand, a drop below current levels might seek support within the $0.11 to $0.12 range.
Below that, the next formidable support remains $0.092, where nearly 64 billion Dogecoins were bought.
What social indicators portray
According to on-chain analytics firm Santiment, social indicators might suggest that there is room for more growth for Dogecoin. It notes that the current search trend level is nothing compared to the May 2021 top.
Also, a classic picture of a big social volume spike marking a potential top, plus sentiment going higher, might imply that traders are positive in their DOGE-related statements.
Arman Shirinyan
Dan Burgin
U.Today Editorial Team
Vladislav Sopov