Emily Walker
Following the inauguration of US President Donald Trump, the Dogecoin network has experienced a notable increase in activity. This uptick is part of a broader trend affecting the cryptocurrency industry, but specific on-chain metrics reveal distinctive patterns among Dogecoin users. Crypto analyst Ali Martinez, utilizing data from the analytics platform Santiment, pointed out a substantial rise in high-value transactions on the Dogecoin platform. He noted that in just 24 hours, Dogecoin saw 588 transactions each worth over $1 million.
Increased Interest in Dogecoin Transactions
The recent growth in large Dogecoin transactions hints at a potential rally, as such activities often signal a liquidity low that prompts upward movement in the market. Historical patterns indicate that an influx of high-value trades typically reflects renewed optimism among investors, particularly as market sentiment shifts toward a more bullish outlook.
For Dogecoin, the highlighted transactions are not only large but significant, each exceeding $1 million. This increase appears timely, coinciding with the positive sentiment surrounding Trump’s inauguration. Thus, the current spike in transactions seems to indicate accumulation rather than profit-taking or sell-offs.
The entire cryptocurrency sector is in a bullish period, with savvy investors jumping in early, anticipating favorable policies under the new Trump administration. This context boosts the notion that the transactions may reflect accumulation instead of sell-offs. Although some may include sell-offs, the overall optimistic mood suggests these might be short-lived, quickly countered by the market’s upward momentum.
Public interest in Dogecoin is also rising on social media, with more than 500,000 mentions on platform X in the past 24 hours. This surge is partly fueled by the establishment of the Department of Government Efficiency, which shares the same acronym (DOGE) as Dogecoin’s ticker, sparking considerable excitement. Increased social media activity characteristically correlates with greater retail engagement, potentially amplifying the positive impact of whale trading on price movement.
DOGE Price Outlook: Emerging Bullish Trends
In a separate technical assessment, Martinez observed that DOGE is currently moving within a multi-year ascending channel on the weekly candlestick charts. The recent bull market momentum began when Dogecoin bounced off the channel’s lower trendline in late 2023, and it has been on an upward trajectory since. This consistent ascent along the channel indicates that DOGE may sustain its bullish path in the long run.
The chart suggests a bullish price target of $15, which would be reached at the upper trendline of the ascending channel. Currently, DOGE is valued at $0.343, meaning that if it reaches the target, it would lead to a remarkable increase of approximately 4,273% from its current level.