Dogecoin Price Insights:
- Dogecoin (DOGE) has gained 20% over the last 10 days as the ecosystem commemorated the birthday of Kabosu, the Japanese dog who inspired the original “doge” meme.
- On-chain data reading reveals that Dogecoin had recorded a 450% increase in Large Transactions ahead of last year’s DOGE Day celebrations.
- Daily time frame technical indicators are pointing toward a potential rally
Dogecoin (DOGE) price is up 20% over the last 10 days as the pioneer memecoin community prepared the 2023 “DOGE Day” —the commemoration of the birthday of “Kabosu, the dog who inspired the original “doge” meme. Historical data trends suggest that DOGE prices could make another leg-up in the days ahead.
Whale Investors Increased their Trading Activity During 2022 DOGE Day Celebrations
Dogecoin is the first memecoin created and also the current largest by market capitalization. Like most memecoins, the DOGE ecosystem is powered majorly its vibrant community activities. On November 2, the community celebrated an important milestone, the birthday —he birthday of “Kabosu”, the Japanese dog who inspired the original “doge” meme.
Based on historical data trends, Dogecoin prices have often reacted positively event in the past. And on-chain readings this week are indicating another potential DOGE price rally.
According to data pulled from IntoTheBlock, Dogecoin whale investors had increased their trading activity ahed of the last Doge day celebration in November 2022. At the time, Dogecoing Whale Transactions spiked from 711 to 3,170 transactions between October 24 to November 1, representing a 445% increase in the Large Investors’ trading activity during that period.
Dogecoin (DOGE) Large Transactions vs. Price | Source: IntoTheBlock
Interestingly, a similar trend has also emerged ahead of the 2023 DOGE day events, the DOGE Large Transactions have once again increased. It went from 604 whale transactions on Ocotober 18 to reach 1,130 on November 2, 2023.
Whale Transaction Count is the daily aggregate of the number of unique transactions exceeding $100,000. Typically, an increase in the daily number of whale transactions is a bullish indicator, signaling increased demand from high-networh investors.
Notably, he 2022 DOGE day celebration had triggeered 100% price bounce from $0.060 to $0.12. If history repeats, DOGE holders can anticipate retest of the $0.1 level in the weeks ahead.
DOGE Price Forecast: $0.01 is Within Reach
In further confirmation of the bullish outlook, the daily-time frame technical analysis shows that DOGE price is on the verge of breaking above the 200-day Simple Moving Average (SMA).
As seen in the chart below, while DOGE price is currently trading at $0.068, the 200-day SMA is currently around $0.069. If the bulls can break above that level, it could catalyze a major price rally toward the $0.10 area.
Dogecoin (DOGE) Price Forecast | Source: TradingView
But on the flipside, if that resistance proves daunting, DOGE price could retraced slightly toward $0.059. However, the bulls can fight back at the $0.062, where there’s a sigificant support buy-wall.
This article was originally posted on FX Empire
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