- Dogecoin (DOGE) is witnessing a surge in transactions over $100,000 and an increase in wallets holding over one million DOGE, indicating heightened institutional interest.
- The meme-inspired cryptocurrency’s price dynamics could shift, with potential resistance at $0.080 and support at $0.067, as it eyes the $0.1 price point.
Institutional and Whale Interest in Dogecoin
Dogecoin, the world’s most renowned memecoin, is currently attracting significant attention from institutional investors. Currently trading at $0.077 with a market capitalization of $10.9 billion, DOGE shows signs of a potential upswing in price due to increased large-scale transactions and a notable growth in the number of wallets holding substantial amounts of DOGE.
Surge in High-Value Transactions
According to recent data, Dogecoin has seen a remarkable increase in transactions exceeding $100,000 over the past month, consistently reaching new highs. This trend indicates a growing interest from institutional investors and large-scale holders, leading to speculation about a significant price increase in the near future. Analyst Ali Martinez highlights this development, pointing to a substantial volume of older DOGE being transferred from previously inactive wallets. This activity suggests a potential shift in the cryptocurrency’s price trajectory.
Notable Increase in Large Holder Wallets
Concurrent with these large transactions is the rising trend of wallet creation holding over one million DOGE. On-chain analytics firm Santiment reports a noticeable surge in the transfer of older DOGE from dormant wallets, marking a key development in the market dynamics of the cryptocurrency.
Dogecoin’s Price Outlook: The Road to $0.1
The current rally in DOGE may gain further momentum with the influx of new users and demand. However, overcoming the initial resistance at $0.080 is crucial for sustaining this upward trend. Global In/Out of the Money (GIOM) data from IntoTheBlock categorizes current DOGE holders based on their entry prices, providing insights into potential resistance and support levels.
According to the data, 762,860 addresses have acquired 19.6 billion DOGE at a minimum price of $0.80. A significant exit by these investors could lead to an immediate correction in Dogecoin’s price. Yet, surpassing this initial sell-wall might set the stage for DOGE to reclaim the $0.10 mark.
On the flip side, a decline below $0.06 could dampen the bullish outlook. Support in this scenario may stem from 457,560 addresses holding 30.8 billion DOGE at an average price of $0.067. Their continued holding could prevent a major reversal in Dogecoin’s price, while early selling by this group could potentially see DOGE’s price fall to $0.06.