Dogecoin (DOGE) price entered 20% weekly gains to reclaim the $0.068 territory on Tuesday. On-chain data analysis examines how the increased whale demand impacted the recent DOGE price action.
After Dogecoin price dropped to a yearly low of $0.057 on October 14, it fell behind Solana before whale investors swooped in to avert historic losses. Do they have enough in the tank to drive the ongoing DOGE price recovery to new heights?
Dogecoin Whales Trading Activity Hits 3-Month Peak
Between October 14 and October 23, Dogecoin price made a blistering 20% recovery. On-chain data reveals that renewed whale interest in the largest memecoin by market capitalization was a major driver.
As depicted below, as the DOGE price languished at a yearly bottom, the number of Dogecoin recorded a lowly 599 Whale Transactions on October 15.
But since then, the whales have swooped to avert larger losses. On October 24, Dogecoin recorded 1,420 whale transactions, the highest since July 25.
The Whale Transaction metric presents the aggregate number of daily transactions that exceed the $100,000 mark. An increase in whale transactions is considered a bullish signal for several reasons.
Firstly, it signifies increased buying interest from whale investors, which then shores up retail investors’ confidence. More importantly, the liquidity provided by these large transactions enables traders to execute trades more efficiently and at favorable prices.
Unsurprisingly, Dogecoin price quickly made a 20% price recovery during that period. However, with c, it remains to be seen if the whales will consolidate their positions or continue pushing aggressively for more gains.
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Mounting Buying Orders Suggest the Bulls are Still in Control
With Dogecoin now trading at a 60-day price peak, a critical on-chain indicator suggests that holders could still push for more gains.
Indicatively, the latest readings from the Aggregate Order Books of 10 crypto exchanges, including Binance and Coinbase, show that despite current high prices, DOGE still has excess market demand.
As depicted below, the traders have placed active orders to buy 782 million DOGE coins. Meanwhile, there are only active sell orders for 740 million DOGE.
The Aggregate order books chart shows the current price distribution of active buy/sell orders that traders have placed for a particular cryptocurrency asset.
As seen above, the current demand for DOGE exceeds the market supply by more than 38 million coins.
When demand for an asset exceeds supply, sellers could be forced to raise prices as they compete to get their orders filled.
In summary, the increase in whale activity and market demand for Dogecoin are vital indicators pointing towards more price gains in the weeks ahead.
DOGE Price Prediction: Road to $0.08?
With the bulls in firm control, the Dogecoin price could be on the verge of a rally toward $0.08.
The Global In/Out of the Money data, which is an c representation of Dogecoin holders’s historical buying trends, also confirms this. However, it shows that the bulls could face significant resistance around the $0.075 territory.
As depicted below, 568,920 addresses had bought 59.6 billion DOGE at the average price of $0.075. If they opt to book some early profits, they could set off a bearish reversal.
But if the bullish whales keep buying Dogecoin, the price could reach $0.08, as predicted.
On the downside side, the bears seize control if Dogecoin price slips below the $0.050 mark. But as observed last week, the bulls will likely mount a strong support buy-wall around $0.060.
The chart above shows that 491,950 addresses currently hold 5.77 billion DOGE bought at the maximum price of $0.60. If they HODL, they could prevent the Dogecoin price reversal.
But if that support level caves, it could trigger a large price decline below $0.05.
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