Bitrabo Editorial
Despite a recent price drop, the outlook for Dogecoin remains bullish thanks to a higher rate of adoption and several other positive metrics. In the short term, the meme coin could see a 50% increase in its value if the market reversal continues.
Dogecoin Whales Are Waking Up
In the past week, Dogecoin whales have been more active than usual. On May 28th, for instance, the number of large DOGE transactions (valued at least $100,000) hit one of the highest levels on record. According to IntoTheBlock, the value of these transactions surpassed $1.94 billion in just seven days, causing Dogecoin’s trading volume to soar past the $1 billion mark. This indicates that investors are once again interested in the coin, strengthening the bullish case for its future.
The increased transaction volume is not the only bullish Dogecoin metric on the rise. The number of DOGE transactions being carried out on the network has also seen exponential growth, in part thanks to the popularity of BRC-20 tokens.
DOGE daily transactions cross 2 million | Source: BitInfoCharts
According to BitInfoCharts, the number of daily DOGE transactions grew from an average of 20,000 at the start of May to 2.0777 million on May 27th. This rising number of transactions further cements the growing bullish sentiment in the community, as more network activity typically leads to higher demand for DOGE.
DOGE Could Skyrocket in the Short Term
If Dogecoin follows the trend of Bitcoin when Ordinals and BRC-20 tokens gained popularity and translated into a surge in price, the meme coin could break away from the general market trend and begin to rally independently, potentially increasing by as much as 50% from its current level. Investors are already taking gains from smaller meme coins, such as PEPE, and reinvesting in DOGE, providing even further support for its rise.
DOGE recovers above $0.073 | Source: DOGEUSD on TradingView.com
If the rally continues, DOGE could reach its first major resistance of $0.075; however, $0.08 will be a crucial resistance level to reach for the coin to hit the 50% mark. Currently, DOGE is trending at $0.073, representing a 1.02% increase in the last 24 hours and a 1.69% increase in the past week.