Dogecoin has experienced an increase in activity recently, indicating a potential recovery after a price correction over the weekend. In the past 24 hours, a significant number of large transactions, typically exceeding $100,000, have been completed between Dogecoin wallets. This surge in trading volume is often interpreted as a sign of interest from larger investors or institutions.
Despite the increase in transaction activity, Dogecoin’s recent rally has shown signs of slowing down. After first breaking the $0.42 level since the bullish trend of 2021, the price has pulled back below $0.40 due to traders taking profits. Currently, Dogecoin is trading below $0.40, having dropped to a low of approximately $0.346 within the last day.
The recent price correction has led some to speculate about the overall sentiment surrounding Dogecoin among cryptocurrency investors. However, on-chain analytics reveal that interest in the coin remains robust, as transaction volumes have soared. Recent data indicates that large transaction volumes reached $23.35 billion, reflecting a 41.12% increase from the previous day. Additionally, the number of active addresses on the Dogecoin blockchain rose to 157,190, representing a 34.91% increase during the same timeframe.
These developments suggest that despite the price fluctuations, there is persistent engagement with Dogecoin, particularly from large holders. A slight rebound in price has been noted, with Dogecoin experiencing roughly a 4% increase over the last 24 hours and a 7.4% rise since its weekend low. Analysts have observed that Dogecoin may be poised to break above the upper trendline of a falling wedge pattern, which has been forming since a price peak of $0.4265 on November 14. A subsequent breakout could potentially lead to a further price rally, possibly pushing Dogecoin toward $0.47. As of now, the price stands at approximately $0.3716, representing a 0.4% increase in the past 24 hours, according to CoinMarketCap data.
