A leading cryptocurrency analyst spotlighted a sharp jump in Dogecoin (CRYPTO: DOGE) transaction volume over the past week.
Transaction Spike Preceded DOGE’s Rally
In an X post, Ali Martinez, citing supportive data from on-chain analytics firm Santiment, stated that nearly $800 million worth of DOGE was transacted on a single day on April 16.
The dramatic spike in on-chain volume preceded DOGE’s price hitting a one-month high of $0.10, though the memecoin has since pulled back sharply.
Is Whale Activity The Trigger?
The total transaction fees paid by users on the Dogecoin blockchain had also jumped to a one-month high on April 16, according to data from Token Terminal.
Interestingly, Martinez flagged a spike in Dogecoin whale purchases last week, amid signs of easing geopolitical tensions.
What To Expect Next?
The Moving Average Convergence Divergence indicator, which compares two exponential moving averages of an asset’s price, typically the 12-period and the 26-period, flashed a “Buy” signal for DOGE, according to TradingView.
The Bull Bear Power indicator, meanwhile, which measures the strength of buyers and sellers, signaled a “Sell.” The Relative Strength Index hovered in the “Neutral” territory.
Sentiment in DOGE’s derivatives market was bullish, with traders opening more short positions than longs, according to Coinglass.
Price Action: At the time of writing, DOGE was exchanging hands at $0.09527, up 0.78% in the last 24 hours, according to data from Benzinga Pro.
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