Dogecoin has shown a remarkable recovery over the past five days after a significant decline triggered by a massive sell-off in the market. During the first five days of August, the cryptocurrency has experienced a sharp declinefalling 38% from $0.1348 to a low of $0.0831. However, DOGE has shown resilience in the face of these challenges. After reaching the $0.0831 mark, the cryptocurrency has started to make a notable comeback.
Over the past five days, DOGE has rebounded DOGE price has increased by around 25%, a recovery that has significantly increased its price from its recent lows. While this upward move has not yet been enough for holders to fully recover the losses incurred earlier in the month, it does show the return of positive momentum for DOGE.
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This partial price recovery has been accompanied by a resurgence in key market indicators, suggesting that investor sentiment towards Dogecoin is starting to turn bullish again. Trading volumes have increased, indicating renewed interest and participation in the market.
Dogecoin’s main indicators are giving bullish signals
According to data from IntoTheBlockThis recovery has been accompanied by an increase in daily trading volume, with the majority of these being accumulations that have increased buying pressure. At the time of writing, the large trading volume for DOGE in USD stands at an impressive $1.01 billion. This represents a substantial 54% increase from the seven-day low of $654.96 million recorded on August 3, just before its sharp decline began.
Interestingly, large transaction volume peaked at $1.52 billion on August 5, coinciding with the start of the recovery. This correlation strongly suggests that large holders, often referred to as “whales,” have been actively participating in the DOGE market during this recovery phase and are driving the upward momentum.
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While the large transaction volume metric does not show whether these are accumulations or sales, the ratio of large holder net flow to exchange net flow suggests the former. This metric tracks the balance between large holder accumulation and exchange inflows, providing valuable insights into the behavior of retail investors and whales. Currently, the ratio is tilted toward large holder accumulation, standing at 3.49%, compared to a negative rate of 1.85% recorded on Monday, August 5.
Still on whale activity, IntoTheBlock’s Bulls and Bears metric suggests that the balance is starting to tip in favor of the bulls. This metric tracks addresses that bought or sold more than 1% of the total trading volume over the last 24 hours, classifying them as bulls or bears, respectively. Over the last two days, there has been a notable increase in bullish activity, with 14 bulls versus 13 bears over the most recent 24 hours. While the margin may be narrow, the presence of more bulls than bears indicates that buying interest is starting to outweigh selling pressure.
At the time of writing, DOGE is trading at $0.1045. A successful break above $0.11 could revive retail interest, which could in turn contribute to a push towards the much-anticipated price level of $0.5.
Featured image from iStock, chart from Tradingview.com
