The Dogecoin network has seen a significant increase in activity following the inauguration of US President Donald Trump. Although this increased activity spanning the entire industry, on-chain data has revealed interesting dynamics among Dogecoin holders. This development was brought into focus by cryptoanalyst Ali Martinez, who, using data from the analytics platform Santiment, highlighted a remarkable increase in high-value transactions on the Dogecoin network. According to MartinezDogecoin recorded an impressive 588 transactions exceeding $1 million in the last 24 hours.
Dogecoin renewed interest from transactions with millions of dollars
The recent surge in large-scale Dogecoin transactions suggests that possibility of a significant riseas this activity usually indicates a liquidity bottom that initiates upward momentum. Historically, an increase in high-value transactions is associated with renewed investor confidence, especially when market sentiment shifts toward bullish trends.
In Dogecoin’s case, the transactions in question are not only significant but exceptionally significant, each exceeding $1 million. What makes this increase even more compelling is the timing, as it coincides with the bullish sentiment surrounding Donald Trump’s inauguration. Therefore, the current increase in transactions seems more indicative of accumulation rather than sales or profit taking.
The entire crypto market is currently in a bullish phase, with smart money getting in early in anticipation of a pro-crypto environment under the new Donald Trump administration. This lends further credence to the idea that these transactions may be more of accumulations than sales. Although some of the activity includes selling, the prevailing bullish sentiment suggests that such events may be short-lived, quickly absorbed by the market’s positive momentum.
Dogecoin is takes off on social mediaamassed over 500,000 mentions on Platform X in the last 24 hours. This is due to the newly created Department of Government Efficiency, which shares the same acronym as Dogecoin’s ticker (DOGE), which has contributed to significant enthusiasm. Increased visibility on social media often leads to increased retail participation, which can create a combined effect with election activity to drive up the price.
DOGE Price Analysis: A New Multi-Year Bullish Pattern
IN another technical analysisnoted Martinez that DOGE trades within a multi-year year rising parallel channel on the weekly candlestick timeframe. The ongoing bull market took off after Dogecoin rebounded from the channel’s lower trend line at the end of 2023, and the meme coin has been trading in an upward direction ever since. The sustained rise along this channel suggests that DOGE could maintain its bullish trajectory over the longer time frame.
In terms of a price target, the chart pattern projects a bullish target of $15 at the upper trendline of the ascending parallel channel. At the time of writingDOGE is trading at $0.343, meaning hitting this target would represent a extraordinary 4,273% increase from the current price level.
Featured image from Unsplash, chart from Tradingview.com
