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In the short term, Dogecoin is encountering its first major resistance at $0.075, although a larger obstacle lies at $0.08. Overcoming this resistance level will be crucial in determining whether the meme coin can achieve a 50% price increase. At the time of writing, Dogecoin is trading at $0.073, up 1.02% in the last day and up 1.69% in the last week.
Despite recent price declines, the bull market for Dogecoin remains strong, supported by increasing adoption and market activity. The resurgence of Dogecoin whale transactions indicates renewed interest from large investors, with transactions worth over $100,000 reaching a total value of $1.94 billion last week, according to data from IntoTheBlock.
This surge in whale transactions also helped the coin’s trading volume surpass $1 billion, signaling investors’ willingness to re-engage in the market and reinforcing the optimistic narrative surrounding the meme coin.
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It is worth noting that the increase in transaction volume is not the only positive metric for Dogecoin
The number of daily transactions on the Dogecoin network has increased significantly, reaching 2.0777 million on May 27th, up from an average of 20,000 at the beginning of May. This increase in transaction activity is due to the popularity of BRC-20 tokens, further adding to the optimistic sentiment and indicating a growing demand for Dogecoin.
Dogecoin draws parallels to Bitcoin’s price rise when Ordinals and BRC-20 tokens gained popularity, and could potentially follow a similar path. If this scenario occurs, Dogecoin’s price could break away from the general market trend and start a standalone rally. Given the already high trading volume, such a solo rally could drive Dogecoin’s price up by as much as 50% from its current level. Moreover, investors are redirecting profits from smaller meme coins like PEPE back into Dogecoin, providing additional support for the digital asset.
In the short term, Dogecoin is encountering its first major resistance at $0.075, although a larger obstacle lies at $0.08. Overcoming this resistance level will be crucial in determining whether the meme coin can achieve a 50% price increase. At the time of writing, Dogecoin is trading at $0.073, up 1.02% in the last day and up 1.69% in the last week.
Despite recent market volatility, Dogecoin is favorably positioned in the short term due to the combination of increasing whale transactions, growing transaction volume, and the potential for a solo rally. However, as with any investment, it is important for individuals to conduct thorough research and exercise caution to make informed decisions based on their own risk tolerance and investment objectives.
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(Featured image by KNFind via Pixabay)
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First published in COIN KURIER, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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