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Dogecoin Breaks 5-Month High Amid Market Upsurge

Dogecoin Breaks 5-Month High Amid Market Upsurge

Dogecoin’s price hit a five-month high of $0.1684 earlier today, taking advantage of the bullish market sentiment. Dogecoin has gained 15% in the last day and is now trading at $0.165. With a daily trading volume of $3.8 billion, the meme coin’s market capitalization crossed the $24 billion threshold.

As the meme coin gained traction, more than 350 million DOGE entered centralized exchanges on October 29, according to statistics from IntoTheBlock. According to data, Dogecoin saw a net influx of more than $51 million during the previous week. Since some investors may be taking profits, increased exchange net inflows typically indicate a price correction. Even if DOGE is down 77% from its peak of $0.737, 85% of its holders are still making profits.

Whale Activities Surge

Whale activity surged as Dogecoin surpassed the $0.14 threshold. Into The Block data shows that on October 27 and 28, the number of significant transactions involving at least $100,000 in DOGE increased from 1,230 to 2,290. Yesterday, whales transferred 15.5 billion DOGE in total. Over the last seven days, Dogecoin has seen $3.46 billion in significant transactions.

However, during the past five days, the Dogecoin whale accumulation has been steadily decreasing, dropping from a net inflow of 456 million DOGE on October 25 to 3 million DOGE on October 28.

The selling pressure may intensify if whale inflows decline. Due to the extremely high trading volume and exchange inflows, Dogecoin may have a brief decline before experiencing another price spike.

Conclusion

Dogecoin’s recent rally to a five-month high showcases the strong bullish sentiment in the crypto market, with a 15% daily gain pushing it close to $0.1684 and bringing its market cap past $24 billion.

Yet, the massive inflows of DOGE onto exchanges and recent profit-taking by investors signal caution. Despite 85% of holders remaining profitable, the heightened exchange inflows often point toward potential sell-offs, especially as whale accumulation has declined recently.

While this influx may indicate a short-term correction, the strong trading volume and whale activity suggest that Dogecoin could experience renewed upward momentum once any initial selling pressure eases.