Dogecoin, the meme-inspired cryptocurrency, has faced significant challenges in recent weeks, enduring a considerable beating in the market. However, despite these setbacks, the bull case for Dogecoin remains strong. The recent market reversal, combined with a surge in adoption, indicates the potential for a substantial 50% upward move in the short term.
Notably, Dogecoin whales have recently awakened from their slumber, creating a surge in activity. On Sunday, May 28, whale DOGE transactions reached one of their highest levels to date. Data from IntoTheBlock reveals that transactions involving at least $100,000 worth of coins surpassed a staggering $1.94 billion within the past seven days.
This surge in activity has also led to a significant increase in Dogecoin’s trading volume, surpassing the $1 billion mark. This surge reflects the renewed willingness of investors to participate in the market, bolstering the bullish narrative surrounding the meme coin.
Moreover, transaction volume is not the sole metric that has experienced growth. The number of DOGE transactions executed on the network has also skyrocketed, primarily driven by the popularity of BRC-20 tokens. BitInfoCharts data indicates that the daily number of DOGE transactions soared from an average of 20,000 at the beginning of May to a remarkable 2.0777 million on May 27. This surge in transaction volume aligns with the growing demand for DOGE and contributes to the bullish sentiment among the community.
Historically, Bitcoin witnessed a surge in price when Ordinals and BRC-20 tokens gained popularity. Similarly, Dogecoin could follow this trend, potentially breaking away from the general market trend and embarking on a solo rally. Given the already substantial volumes, such a rally could result in a 50% increase from its current level. Additionally, investors are redirecting profits from smaller meme coins, such as PEPE, back into DOGE, further bolstering the digital asset.
Should Dogecoin continue to rise, its first significant resistance level would be at $0.075. However, the true test lies at $0.08, where the meme coin’s ability to achieve a 50% climb will be determined.
At the time of writing, DOGE is trading at $0.073, showing a 1.02% increase in the last 24 hours and a 1.69% increase in the past week.
With increasing transaction volume, rising investor interest, and the potential for a solo rally, Dogecoin’s bull case remains compelling. While challenges lie ahead, the meme coin’s recent developments suggest the possibility of an imminent 50% upside move. Investors and enthusiasts alike eagerly await Dogecoin’s next moves, poised for potential gains in the volatile cryptocurrency market.