The cryptocurrency landscape is witnessing a notable shift as Dogecoin, the largest meme coin, experiences renewed upward price momentum. This surge has sparked a significant increase in adoption, evidenced by a remarkable rise in small Dogecoin (DOGE) wallets over the past few weeks. As DOGE continues to gain traction, this growth could potentially enhance its price and trigger further gains.
Growth in Wallets Holding Up to 100,000 Dogecoin
In an optimistic turn of events, the number of wallets containing less than 100,000 DOGE has seen a substantial increase. Market intelligence and on-chain data platform, Santiment, reported this development on X (formerly known as Twitter), capturing the attention of the community.
This noticeable increase in small wallets is a testament to the growing market optimism, indicating a rising interest among smaller investors. It also reflects a steadfast confidence in Dogecoin’s future price performance as retail investors acquire the meme coin in smaller amounts, showcasing a robust sentiment toward DOGE fueled by improving market conditions.
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According to data from Santiment, there have been over 74,885 additional wallets with fewer than 100,000 DOGE in the last four weeks. The platform remarked, “Regardless of your take on meme coins, it has been impossible to ignore the ascension of crypto’s top meme coin.” This surge in small wallets is noteworthy as it highlights a shift in investor behavior toward smaller investments.
Interestingly, while smaller investors are accumulating DOGE, there has been a decline in shark and whale wallets, with a net decrease of -350 during this period. This drop suggests a shift in large-scale investor behavior which could impact the price stability of DOGE in the short term due to their significant role in supporting price growth. Nevertheless, in recent days, about 108 wallets have re-entered the market, contributing to the latest rally pushing DOGE above the $0.40 mark for the first time in three and a half years.
Santiment emphasized that their ideal scenario is for both retail and major stakeholders to collectively amass speculative-driven coins like Dogecoin. The platform believes that “the next few days will be telling for sharks and whales” in maintaining DOGE’s renewed price momentum.
Is DOGE’s Bullish Price Momentum at Risk Due to Strong Resistance?
While Dogecoin is experiencing a surge in smaller wallets, the meme coin’s price appears to be losing some of its upward momentum. Recently, DOGE’s price has been observed moving downward after encountering strong resistance at the $0.4355 level.
This decline has raised concerns within the community regarding Dogecoin’s short-term price trajectory. However, several crypto analysts suggest that this dip is crucial for DOGE’s long-term growth. Presently, the meme coin has decreased by nearly 10% in the last 24 hours, trading at $0.3762. Despite the significant drop, investors and traders remain confident and interested in Dogecoin, as indicated by an over 38% increase in trading volume in the past day.
Although DOGE is navigating through a period of resistance, the continued interest and activity in the market suggest a resilient community that remains hopeful for future growth. As Dogecoin’s journey unfolds, market participants will be closely watching how these dynamics play out in the coming days.
