Summary
The price of Dogecoin dropped by over 2% on Wednesday, despite positive network activity and bullish technical signals. A “golden cross” chart pattern, not seen in a year, was identified, signaling a potential reversal of the multi-month downtrend. Whale Alert recorded over $47 million worth of Dogecoin changing hands in three large transactions.
Introduction
The price of meme-favorite crypto Dogecoin fell over 2% on Wednesday, even as network activity reignited and technical signals flashed bullish. Blockchain trackers spotted a landmark “golden cross” chart pattern for the first time in a year, along with growing wallet use. However, DOGE has yet to respond positively as traders weigh mixed outlooks.
Main Points
Whale Alert recorded over $47 million worth of Dogecoin changing hands across three large transactions early Thursday. Outflows from centralized exchange Robinhood to external wallets made up the bulk, possibly indicating investors withdrawing to hold independently or conduct business on-chain.
The transfers align with a noteworthy uptick in so-called active addresses observed on the Dogechain. According to blockchain analytics firm IntoTheBlock, the count of active addresses transacting DOGE has surged by 87% since November 1st.
Adding to DOGE’s intriguing position is a bullish technical indicator not seen over the past 12 months. This week marked the first “golden cross” on the daily Dogecoin chart since November 2021, when faster-moving averages crossed above slower ones. Last March, the opposite death cross pattern formed, presaging further weakness. Now the golden cross re-emergence hints the multi-month downtrend may have bottomed out or be on the verge of reversing higher again.
Conclusion
Despite positive network activity and a bullish technical signal, the price of Dogecoin dropped by over 2% on Wednesday. This comes as Whale Alert recorded significant transactions of over $47 million worth of Dogecoin, possibly indicating investors withdrawing to hold independently or conduct business on-chain. The surge in active addresses on the Dogechain further adds to the intrigue surrounding DOGE’s position. With the appearance of a “golden cross” chart pattern, which hasn’t been seen in a year, there is speculation that the multi-month downtrend may have bottomed out or be on the verge of reversing higher again.