Dogecoin Maintains Bullish Outlook as Whale Transactions Hit 4-Month High
Due to heightened transactions, Dogecoins on-chain data continues to be strong, with whales igniting the fire.
Leading on-chain metrics provider Santiment acknowledged, On-chain activity indicates that whales may not be done with all the bullish momentum of cryptos top meme coin. Though they took profit just before the top, their activity remains very high on DOGEs network.
Address activity has also been on the rise, with this metric hitting a seven-month high, given that 63,689 DOGE addresses transferred coins in just three days.
On the other hand, whale transactions surged to a 4-month high after climbing to the 1,203 mark.
Triggered by market and technical dynamics, whales continuously purchase DOGE based on the coins high volatility for speculative opportunities.
Furthermore, Dogecoins significant online community might propel this trend since notable figures like Elon Musk have boosted its solid social influence.
Is Dogecoins Explosive Move on the Horizon?
Various factors paint a bullish picture of Dogecoin, such as the presence of a bullish reversal, which could trigger a 50% price increase.
This is based on DOGEs heightened efforts to exit a falling wedge, which could signal the start of a new Dogecoin season that will see the top meme coin hit the $1.6 zone.
A falling wedge pattern forms whenever the distance between the upper and lower trend lines decreases with time, which depicts diminishing selling pressure.
This chart formation is bullish since it shows potential trend continuations or price reversals.
Furthermore, a bullish divergence sign is popping up in the Dogecoin ecosystem because, despite the meme coin trading below the 200-week moving average (MA), the relative strength index (RSI) indicator exited oversold territory.
Therefore, the bullish divergence further cements Dogecoins quest for an uptrend reversal since the bearish momentum is weakening.
Read more: https://zycrypto.com/dogecoin-maintains-bullish-outlook-as-whale-transactions-hit-4-month-high/
Text source: ZyCrypto
