- Dogecoin established a double top at $0.13, losing 18% of value since.
- Despite the 18% market pullback, DOGE is picked up by new holders.
- Whale activity stays near the quarterly high as whales accumulate again.
The largest meme token, Dogecoin (DOGE), has recently embarked on a double-digit rally. The bullish momentum, first ignited by the 0.50 percent Federal Reserve rate cut, was later strengthened by renewed trader interest in meme coins.
New DOGE Holders Join the Action
Dogecoin tapped a local double top at $0.13 on September 28, 2024, but got rejected at this price barrier due to weak buying strength. On top of that, the crypto market correction hit DOGE harder than expected on Wednesday, as tensions in the Middle East extended to the crypto market’s sentiment.
While this has caused a 10.7% drop in Dogecoin’s market value over the past 24 hours, DOGE is now back at pre-claimed support levels between $0.101 and $0.107. This support bubble holds 11.73B Dogecoin tokens, split between 98.66K crypto addresses. As 72% of current holders profit from this price, the support level could prove crucial for a rebound.
DOGE’s upward trajectory could find fruitful assistance in the newest Dogecoin custodians. According to IntoTheBlock, newly registered DOGE wallets have skyrocketed by 72% in seven days. To illustrate, 19.63K new crypto wallets were created on Dogecoin’s Proof of Work (PoW) blockchain on the last day of September when the DOGE price was dwelling slightly below $0.12.
Dogecoin’s Whales Are Not Done Yet
To understand where the top dog meme coin is heading next, it’s important to measure how the largest holders, known as crypto whales, reacted to the harder-than-expected market correction. Before DOGE reached the local double top of $0.13 on September 28, 2024, the token tacked on to the largest whale activity since May, recording 1,203 whale transactions ahead of the milestone.
While an increase in this metric is logical during local peaks, after successfully taking profits, whales did not stop there. Santiment confirms that the very high whale activity continues four days into the local top.
With 63.689K transactions over the past three days, Dogecoin retail crypto holders are potentially looking for the next leg in the breakout. Coinciding with major Dogecoin holders returning for more, this is a favorable combination for a breakthrough in price, given that the largest holders are accumulating rather than distributing.
Judging from the one-hour Dogecoin price charts, that’s exactly the case. The Chaikin Money Flow (CMF) index rebounded from a slightly negative value to 0.18, signaling a fresh incoming money flow into the token. As of press time, DOGE is changing hands at $0.105, sliding down by 1.1% over the past hour.
On the Flipside
- Dogecoin saw a record-high inflow of $17.94M into crypto exchanges on October 1, 2024, potentially signaling the intention of several major players to sell large amounts of DOGE.
Why This Matters
A wave of newcomer Dogecoin holders can lead to increased adoption and deeper market liquidity, essential for the long-term survival of the largest PoW altcoin.
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