By Alicia Maher
Large wallet addresses on the Dogecoin network have pushed up their activities. They had, however, been at their lowest performance level for a couple of months before now. This was because the asset’s price and market score were nothing to write home about.
More than Profit
But the latest spike is so important that it indicates more than mere token profitability. Whales have returned heavily this time for a reason.
It so happens that memecoins are among the most unstable category of assets in the crypto market. Whenever there is a bull run, this asset class usually appears to make its own movements. This activity, in turn, usually returns profit in hundreds of percentages to well-positioned investors.
But when there is a market downturn, they tend not to make any movements. They mostly follow the pattern of an asset such as Ethereum.
The memecoins’ obvious absence of independence from certain cryptocurrencies drove traders off. After all, what is the point of having Bitcoin exposure through Dogecoin? More importantly if the latter goes with much less volatility.
Nevertheless, the memecoins’ decoupling from the rest of the market might draw new funds in its direction. The increasing number of whale activities stands to confirm this postulation.
General Market Rally
Whales are now moving their funds into the memecoin. The next expected development is that DOGE will gain more traction within the market. With that, retail investors will be encouraged to start buying into the asset as time goes on.
Fortunately, DOGE’s price rally kept on with its trajectory even the day after the huge rise. Right now, DOGE is consolidating at the level of its local resistance. It is also implementing the consolidation in its 200 daily moving average.
Breaking through the aforementioned resistance zone will be the token’s first try to get out of the decline in 200 days. DOGE bulls will have to give the highest volume they can at this time. This is because the asset is pushed down heavily by selling pressure at the resistance zone.
As of the time of this report, DOGE trades at $0.0758. It has jumped by about 7.5% over the last 24 hours.
The general crypto market is also staging a rally with Bitcoin and Ethereum leading the way. Bitcoin successfully beat the $19,500 resistance area and now trades at $20,606. While Ethereum, on the other hand, currently trades at $1,549.
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