Here is Why Dogecoin Gained 20% Today
Santiment says smaller wallets holding less than 100,000 DOGE have experienced a significant influx, with nearly 74,885 new wallets appearing in the past month.
Dogecoin, the meme-inspired cryptocurrency, has witnessed a remarkable surge in recent weeks, reaching its highest price point in three years, with its current price at 0.39942 USD and surge 19.46% in the past 24 hours.
Notably, this is due to increased activity from retail investors and the re-entry of large-scale investors.
According to market analysis platform Santiment, smaller wallets holding less than 100,000 DOGE have experienced a significant influx, with nearly 74,885 new wallets appearing in the past month.
The heightened retail interest coincides with a recent decline in “sharks” and “whales”—large-scale investors—with 350 high-value accounts exiting the market during the same period. 108 whale wallets have recently surged back, driving Dogecoin above $0.40, its highest point since 2020.
Dogecoin to Hit New Highs Sentiment says
Sentiment suggests that sustaining this bullish momentum will require ongoing support from both retail investors and large stakeholders. Market watchers are now keenly observing whether more high-value investors will re-enter the market to further fuel the rally.
Further evidence of Dogecoin’s bullish momentum can be found in the sharp increase of DOGE being moved off exchanges, a trend often associated with accumulation. Data from IntoTheBlock reveals a 157.64% jump in exchange outflows over the past 24 hours, with DOGE flowing into private wallets, indicating growing interest from long-term holders.
This trend extends across a broader time frame, with weekly outflows rising 434.51% and a dramatic 1,820.58% increase over the past 30 days. The pattern of sustained outflows reinforces the notion of stronger backing for Dogecoin’s upward trajectory, largely driven by long-term investors.
Analysts are closely monitoring Dogecoin’s recent price trend, identifying signs of a potential parabolic run. Technical analyst Ali Martinez has pinpointed Dogecoin’s breakout from a longstanding resistance line, a pattern historically preceding significant price spikes.
In the 2017-2018 bullish phase, a similar breakout resulted in a staggering 8,933% price increase, with Fibonacci retracement levels guiding the path. Based on this historical analysis, Martinez projects possible future price targets within the 1.618 to 2.272 Fibonacci levels, which could place Dogecoin’s price between $3.95 and $23.25.
Nonetheless, while the long-term viability of Dogecoin remains a topic of debate, its current bullish momentum, coupled with technical indicators suggesting potential for parabolic growth.
