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After a weeklong drawdown in the performance of the top altcoins occurs, Dogecoin is now making a major move toward recovering its valuation. Different metrics are lending credence to this recovery attempt as the trading volume over the past 24 hours has jumped more than 58% to $600,461,241.
What DOGE whales are up to
In the round-up of the weekend's growth, Dogecoin whales exerted influence over the market by acquiring a total of 6.4 billion DOGE overnight. Per data from crypto analytics platform IntoTheBlock, Dogecoin whale transactions jumped from a low of 5.37 billion DOGE in the past seven days to about 11.74 billion DOGE before settling at the current figure.
Gamza KhanzadaevThese whale transactions mark those Dogecoin-related accumulations that are worth at least $100,000. When whales accumulate, it is a show of confidence that a price rally might accompany the surge.
The trend in Dogecoin suggests this rally might soon be recorded. Already, there has been an elongated bearish drawdown as the price is down 1.59% in 24 hours to $0.134. The coin has also extended its slump to 7.12% over the past week.
If the whale buy-ups continue, there might be a shift in stance, helping to drive scarcity in the supply of Dogecoin, potentially triggering a price surge.
Market sentiment's role
Dogecoin’s influence on the market is gradually reducing atop its $19,464,473,979 market cap. Rather than fueling a market drawdown, it is more susceptible to being influenced by the broader trend in the ecosystem.
This is good positioning, as its correlation with BTC might pay off when the spot Bitcoin ETF inflows help return the top coin to its All-Time High (ATH). In the meantime, Dogecoin developer Mishaboar has cautioned the community against the risk of pursuing alternatives without proper risk assessment.
Gamza Khanzadaev
Tomiwabold Olajide
Vladislav Sopov
Dan Burgin