- DOGE’s price surged by 33% in the last seven days.
- A few indicators hinted at a possible price correction.
Dogecoin [DOGE], the world’s largest meme coin, created a lot of buzz over the last few weeks as its price rallied substantially. Though there might be several factors that helped DOGE showcase this performance, one of the main reasons could be whale activity.
Dogecoin whales are hungry
The entire crypto market remained more or less bullish last week as Bitcoin [BTC] went above the $70k mark. But Dogecoin was the star of the show, as according to CoinMarketCap, the meme’s value surged by more than 33% in just the last seven days.
Meanwhile, Ali, a popular crypto analyst, posted a tweet highlighting an interesting development regarding DOGE whales. As per the tweet, whales purchased 1.40 billion DOGE over the past two weeks.
The worth of the bought coins was more than $280 million. This clearly indicated that the big players were confident in DOGE and expected the meme coin’s price to rise further in the coming days.
AMBCrypto’s analysis of Santiment’s data revealed that whale activity around DOGE continued to remain high during the last few days as well. This was evident from the massive rise in its whale transaction counts.
As the price increased, DOGE’s popularity rose as its social volume surged. The memecoin’s weighted sentiment also shot up on the 28th of March, suggesting that bullish sentiment around the meme coin was dominant in the market.
Source: Santiment
Is a trend reversal waiting?
Though the past week was bullish, Dogecoin’s daily chart turned red as its value went down slightly. According to CoinMarketCap, at the time of writing, DOGE was trading at $0.2138 with a market capitalization of over $30 billion, making it the 8th largest crypto.
To check if there could be a reversal, AMBCrypto took a closer look at DOGE’s metrics. We found that despite a short downtick, DOGE’s MVRV ratio continued to remain high.
Additionally, its funding rate was also green, meaning that derivatives investors were actively buying DOGE.
Source: Santiment
Read Dogecoin’s [DOGE] Price Prediction 2024-25
We then analyzed Dogecoin’s daily chart. Our analysis revealed that the technical indicator MACD displayed a clear bullish upperhand in the market.
However, the chances of a price correction can’t be ruled out as the Money Flow Index (MFI) had entered the overbought zone. This might increase selling pressure on the meme coin and in turn drop its price.
Source: TradingView