Dogecoin’s (DOGE) price recovered to $0.068 on Tuesday, marking a 20% weekly rise. An investigation of on-chain data looks at how the recent DOGE price movement was affected by the increasing demand for whales.
Dogecoin’s price fell behind Solana on October 14 after hitting an annual low of $0.057, but whale investors intervened to prevent record-breaking losses. Do they have what it takes to propel the current DOGE price rebound to unprecedented heights?
Trade Activity for Dogecoin Whales Reachs a Three-Month High
From October 14 to October 23, there was a sharp 20% increase in the price of Dogecoin. Rekindled whale interest in the biggest memecoin by market value was a key factor, according to on-chain statistics.
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As seen below, on October 15, there were just 599 Whale Transactions for Dogecoin, although the price of the cryptocurrency was at an all-time low.
However, the whales have now swooped in order to prevent more losses. Dogecoin had 1,420 whale transactions on October 24, which is a record high since July 25.
The total number of transactions that surpass $100,000 per day is displayed by the Whale Transaction statistic. For several reasons, an increase in whale trades is regarded as a positive indication.
First of all, it shows that whale investors are becoming more interested in purchasing, which boosts the confidence of regular investors. More significantly, traders are able to execute deals more quickly and profitably because to the liquidity these massive transactions bring.
Growing Purchase Orders Indicate the Bulls Are Still in Charge
Dogecoin is now trading at a 60-day price top, but holders may still be able to push for further gains, according to a crucial on-chain indicator.
According to the most recent readings from the Aggregate Order Books of ten cryptocurrency exchanges, including Coinbase and Binance, DOGE continues to have surplus market demand despite its current high price.
The traders have current orders to purchase 782 million DOGE coins, as shown below. Only 740 million DOGE have active sell orders as of right now.
The price distribution of active buy/sell orders that traders have placed for a certain cryptocurrency asset is displayed on the aggregate order books chart.
As can be seen above, there are currently more than 38 million more DOGE in demand than there are available on the market.
Sellers may be compelled to increase prices in order to fulfil orders when there is a greater demand for an asset than there is supply.
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