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.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.