Dogecoin’s recent price movements show a strong correlation with Bitcoin, with the asset rising 131.22% over the past month. Despite this, its upward momentum has slowed in the past week, with modest gains of 3.27%. However, investors are still engaging in accumulation, a strategy involving increased buying activity ahead of a potential breakout.
A recent surge in large transactions on Dogecoin reached its highest levels in the past week, driven by 9,410 large transactions worth $23.35 billion. These transactions are typically conducted by market participants holding at least 1% of the asset’s supply, often referred to as whales.
The correlation between Dogecoin and Bitcoin is strong, with a 0.97 measurement indicating that DOGE’s price movements closely mirror BTC’s. This correlation could positively impact DOGE’s price trajectory if Bitcoin continues to rise.
Recent accumulation by larger traders has surged, with holding time increasing by 301.99% over the past seven days. This suggests growing confidence in Dogecoin as a long-term investment. However, there is still uncertainty surrounding the asset’s future direction.
Technical analysis suggests that Dogecoin could achieve a significant gain of 81.08%, potentially trading at $0.84. If this scenario unfolds, the memecoin may see a breakout in upcoming trading sessions, driven by market whales.
Source: https://ambcrypto.com/dogecoin-rides-bitcoins-rally-to-set-a-short-term-target-details