As market fears intensify, several cryptocurrencies have experienced a sharp decline in prices. Amid the chaos, there has been a significant uptick in Dogecoin activity.
The OG meme coin experienced its largest spike in active DOGE addresses in the past six months as per new data. Whales also appear to be holding on, which could signify a much-needed rebound in DOGE’s price.
Dogecoin’s Active Addresses Soar
According to the popular crypto analyst Ali Martinez, the number of active addresses soared to 84,306, indicating a resurgence in user engagement and interest within the Dogecoin community.
This surge may signal a potential bullish sentiment among investors, as increased activity often correlates with heightened trading and accumulation patterns.
At the time of writing, DOGE is trading near $0.10. It dropped by almost 11% on Wednesday amidst a broader market drawdown triggered by escalating conflict in the Middle East. The latest correction has wiped out the gains it made at the end of September.
DOGE Whales Confident on Rebound?
Since hitting a recent peak on Saturday, Dogecoin has pulled back by 18%. Despite this sharp retracement, on-chain activity suggests that large investors, or whales, may still be positioning for further bullish momentum.
While many whales took profits just before Dogecoin reached its peak, their heightened activity on the network remains evident, as the crypto analytic platform Santiment found.
In fact, data revealed that 63,689 active wallet addresses on the Dogecoin network completed a significant number of transfers over just a span of three days. This represented the highest level of address activity for DOGE since April. Additionally, 1,203 whale transactions occurred just before the price peaked on September 28, marking the most intense whale activity since late May.
This continued involvement by whale entities indicates that they may be preparing for a turnaround, thereby hinting that the recent downturn could be temporary.