Recent observations indicate that Dogecoin (DOGE) users are experiencing a notable uptick in network activity. On-chain analyst Ali Martinez shared his insights with over 73,000 followers on the social platform X, hinting that this surge could be driven by institutional investors entering the market.
Why Is There an Increase in Activity?
Martinez pointed out a steady rise in large transactions occurring within the Dogecoin network, signaling that both institutional players and significant DOGE holders, often referred to as whales, are strategically positioning themselves for possible price increases.
Are Large Investments Impacting Dogecoin?
In a recent report, Martinez noted that cryptocurrency whales acquired more than $100 million worth of DOGE in just one day, which may signal positive trends for the cryptocurrency’s valuation moving forward.
Martinez predicts that Dogecoin has the potential to mirror the significant price rallies experienced in 2017 and 2020, with expectations that DOGE could exceed its prior peak of $0.7316 and possibly reach $2. He remarked, “In 24 hours, Dogecoin whales purchased over 1 billion DOGE, amounting to approximately $108.7 million!”
- Increased transaction volume suggests heightened investor interest.
- Institutional investments are likely driving the recent surge.
- Potential for DOGE to achieve significant price milestones.
Currently, Dogecoin is trading at around $0.113, showing an increase of over 2% in the past day. Martinez believes DOGE could witness a 200% rise, followed by a 60% pullback, leading into a bullish trend after breaking out of a long-term descending triangle.