The Dogecoin network saw a significant increase in activity following the inauguration of US President Donald Trump. Although this ramp-up of activity Cuts Across the Industry, On-Chain Data Revealed Interesting Dynamics among Dogecoin holders. These developments were highlighted by crypto analyst Ali Martinez, who, using data from analytics platform Santiment, highlighted a remarkable increase in high-value transactions on the Dogecoin network. According to MartinezDogecoin saw an impressive 588 transactions exceeding $1 million in the last 24 hours.
Dogecoin Renewed Interest in Million Dollar Transactions
The recent surge in large-scale Dogecoin transactions suggests that possibility of a significant increasebecause this activity generally indicates a liquidity trough which initiates upward momentum. Historically, an increase in high-value transactions is associated with increased investor confidence, particularly when market sentiment shifts toward bullish trends.
In the case of Dogecoin, the transactions in question are not only large but exceptionally significant, each exceeding $1 million. What makes this surge even more compelling is the timing, as it coincides with the bullish sentiment surrounding Donald Trump’s inauguration. Therefore, the current increase in transactions seems more indicative of accumulation than selling or profit-taking.
The entire crypto market is currently in a bullish phase, with smart money moving in early in anticipation of a pro-crypto environment under the new Donald Trump administration. This lends even more credence to the idea that these deals may be more accumulations than sell-offs. Even though some of the activity includes sell-offs, the prevailing bullish sentiment suggests that such events could be brief, quickly absorbed by positive market momentum.
Dogecoin is gaining momentum on social networksgarnering over 500,000 mentions on the X platform in the last 24 hours. This is due to the new Department of Government Effectiveness, sharing the same acronym as Dogecoin’s (DOGE) ticker, which has contributed to considerable enthusiasm. Increased visibility on social media often results in increased retailer participation, which could create a combined effect with whale activity to drive up prices.
DOGE price analysis: a new uptrend over several years
In another technical analysisMartinez noted that DOGE is trading over several years ascending parallel channel on the weekly candlestick time frame. The ongoing bull market gained momentum after Dogecoin bounced off the channel’s lower trendline in late 2023, and the meme coin has been trading in an upward direction since then. The sustained rise along this channel suggests that DOGE could maintain its upward trajectory for a longer period.
In terms of price target, the chart model projects a bullish target of $15 at the upper trendline of the ascending parallel channel. At the time of writingDOGE is trading at $0.343, meaning reaching this target would represent a extraordinary increase of 4,273% compared to its current price level.
Featured image from Unsplash, chart from Tradingview.com