Dogecoin (DOGE), the largest dog-themed cryptocurrency by market value, has recently seen a significant increase in transaction volume, indicating increased activity among whales and institutional players. According to data from IntoTheBlock, the total volume of these large transactions reached $1.09 billion in the last 24 hours, amounting to approximately 8.61 billion DOGE.
Increase in Large Transaction Volume
Large Transaction Volume is a key metric that tracks the total amount of transactions conducted by major market players like whales and institutions in a single day. An increase in this metric typically indicates significant buying or selling activity among these participants. The recent rise in Dogecoin’s large transaction volume likely points to a period of increased interest and activity due to market conditions or strategic moves by large investors.
Currently, the overall cryptocurrency market is experiencing a decline, with Bitcoin recently falling to near $65,000 lows. This drop occurred amid speculation that the U.S. government might liquidate a portion of the significant amount of BTC seized during crackdowns on illegal markets like Silk Road. This downward trend has also affected Dogecoin, which is currently trading in the red.
Technical Outlook for Dogecoin is Positive
Since its launch, Dogecoin has shown high volatility, and it continues to do so recently. After a four-day decline, the altcoin found support around its 50-day Simple Moving Average (SMA) at approximately $0.123. This level is crucial as it could form the basis for a potential price recovery. At the time of writing, Dogecoin is trading at $0.125, down 3.16% in the last 24 hours, with data indicating a 5.42% drop over the past 7 days.
For a potential upward movement, Dogecoin needs to establish the 50-day SMA as a solid support level. If successful, this could lead to a relief rally targeting the 200-day SMA at $0.134. A sustained breakout above this level could see the price climb towards $0.14, potentially marking the beginning of a new uptrend targeting $0.18.
Conversely, if downward pressure increases and the price falls below the critical support at $0.12, the altcoin could see increased selling activity. In such a scenario, the price could further decline, potentially reaching $0.10.
