Dogecoin, the meme-inspired cryptocurrency, has faced significant challenges in recent weeks, taking a sizeable hit in the market. However, despite these setbacks, the bull case for Dogecoin remains strong. The recent market reversal, combined with a spike in adoption, suggests a substantial upside potential of 50% in the short term.
Notably, Dogecoin whales have recently awakened from their slumber, creating a spike in activity. On Sunday, May 28, whale DOGE transactions reached one of their highest levels to date. Data from IntoTheBlock reveals that transactions involving at least $100,000 worth of coins surpassed $1.94 billion in the last seven days.
This surge in activity also led to a significant increase in Dogecoin trading volume, crossing the $1 billion mark. This surge reflects investors’ renewed desire to participate in the market, reinforcing the bullish narrative surrounding the meme coin.
Additionally, transaction volume isn’t the only metric experiencing growth. The number of DOGE transactions executed on the network has also skyrocketed, mainly driven by the popularity of the BRC-20 token. BitInfoCharts data shows that the daily number of DOGE transactions jumped from an average of 20,000 in early May to 2.0777 million on May 27. The surge in transaction volume was in line with the increasing demand for DOGE and contributed to the bullish sentiment among the public markets.
Historically, Bitcoin witnessed price spikes as Ordinals and BRC-20 tokens gained popularity. Likewise, Dogecoin can follow these trends, potentially breaking away from the general market trend and starting a single rally. Given the already large volumes, such a rally could result in a 50% gain from current levels. Additionally, investors are shifting profits from smaller meme coins, such as PEPE, back to DOGE, further strengthening the digital asset.
If Dogecoin continues to rise, its first significant level of resistance will be $0.075. However, the real test lies at $0.08, which is where the meme coin’s ability to achieve a 50% increase will be determined.
At time of writing, DOGE was trading at $0.073, representing a 1.02% gain in the last 24 hours and a 1.69% gain in the past week.
With rising transaction volumes, increasing investor interest, and the potential for a single rally, the Dogecoin bull case remains compelling. While challenges lie ahead, recent developments of the meme coin suggest an imminent 50% rise is likely. Investors and fans alike are looking forward to Dogecoin’s next move, bracing for the potential gains in the volatile cryptocurrency market.