Despite This Week's Price Drop, On-Chain Metrics and Expert Analysis Indicate a Potentially Bullish Future for Dogecoin

The price of Dogecoin experienced a notable drop this week, plunging more than 20% at times, from a high of $0.1321 on Saturday to a low of $0.1026 by Tuesday.

The price of Dogecoin experienced a notable drop this week, plunging more than 20% at times, from a high of $0.1321 on Saturday to a low of $0.1026 by Tuesday. However, on-chain metrics and expert analysis indicate a potentially bullish future for the popular meme coin.

On-chain analytics firm Santiment provided a detailed breakdown of Dogecoin’s activity via social media, highlighting robust participation from large-scale holders, known as whales, within the cryptocurrency’s network. According to Santiment, “Dogecoin has retraced -18% from its peak back on Saturday. But on-chain activity suggests whales may not be done with all the bullish momentum of crypto’s top meme coin. Although they took profit just before the top, their activity remains very high on DOGE’s network.”

The analytics firm also noted a surge in Dogecoin’s network activity, pointing out that Dogecoin recently reached a seven-month high in address activity and a four-month high in whale transactions, while retail transactions saw a boost during the price dip.

Over the past three days, 63,689 DOGE addresses have transferred coins, marking the largest stretch since April 2-4. Additionally, 1,203 whale transactions involving amounts greater than $100,000 occurred just before the local Dogecoin price peak on September 28th, the highest level of whale activity since May 26-28.

Crypto analyst Ali Martinez highlighted the significant growth in Dogecoin’s network activity on social media. According to Martinez, “The Dogecoin network is experiencing substantial growth! Over the past week, there’s been a 72% increase in new DOGE addresses, and yesterday alone, 19,630 new DOGE addresses were created!”

Moreover, Martinez highlighted a potential bullish sign for Dogecoin through technical analysis, stating that DOGE might be nearing a MACD bullish crossover on the weekly chart, which could indicate upcoming price increases. According to Martinez, “The last two times Dogecoin had a MACD bullish crossover on the weekly chart, it rallied 90% and 180%, respectively. A new MACD bullish crossover could be forming soon!”

The MACD, or Moving Average Convergence Divergence, is an essential tool in technical analysis. It consists of two lines: the MACD line, derived from the difference between the 26-period and 12-period exponential moving averages (EMAs), and the signal line, the 9-period EMA of the MACD line. A bullish crossover, where the MACD line crosses above the signal line, typically signals a shift from a bearish to a bullish market trend, often interpreted as a buy signal.

Renowned crypto analyst Luciano pointed out a breakout from a descending channel on the daily chart, advising his 2.2 million social media followers, “DOGE has had a decent run recently and looks poised to continue. In my opinion, dips are for buying, and DOGE will have a spectacular season this cycle. Do your own research (DYOR) – Not A Financial Advisor (NAFA).” At the time of reporting, DOGE traded at $0.1087.

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