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Dogecoin DOGE/USD may have retraced significantly this week, but whale investors have still not given up on the king of meme coins yet.

The total number of addresses involved in DOGE transactions daily surged to 63,689 in the past three days, marking the largest 3-day growth in six months.

Additionally, more than 1,200 transactions worth over $100,000 were recorded preceding the local top on Saturday, the highest whale activity since May 26-28.

🐶 Dogecoin has retraced -18% from its top back on Saturday. But on-chain activity indicates that whales may not be done with all the bullish momentum of crypto's top meme coin. Though they took profit just before the top, their activity remains very high on DOGE's network. pic.twitter.com/FsmWJGkSE6 — Santiment (@santimentfeed) October 2, 2024

“Though they took profit just before the top, their activity remains very high on DOGE’s network,” remarked Santiment.

DOGE’s bullish potential was also underlined by widely followed cryptocurrency trader Ali Martinez. In an X post, he observed the formation of a MACD bullish crossover on the weekly chart.

Citing history, Martinez said that previous occurrences of MACD bullish crossovers preceded rallies of 90% and 180%, respectively.

The MACD is primarily used to gauge an asset’s overall trend. When the MACD line crosses above the signal line, the sentiment is bullish, and when it crosses below the signal line, the sentiment is bearish.

The last two times #Dogecoin $DOGE had a MACD bullish crossover on the weekly chart, it rallied 90% and 180%, respectively.

A new MACD bullish crossover could be forming soon! pic.twitter.com/1YfefMe36i — Ali (@ali_charts) October 2, 2024

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Why It Matters: This analysis comes in the wake of a broader slump in the cryptocurrency market after news of Iran’s missile attack on Israel heightened fears of a full-blown war and economic trouble.

Bitcoin BTC/USD and Ethereum ETH/USD were down 3% and 6%, respectively, while the total market capitalization contracted more than 4% over the last 24 hours.

A pseudonymous cryptocurrency trader, Master Kenobi, predicted last month that Dogecoin would outperform Bitcoin in the current market cycle, as it has in past cycles.

He argued that Dogecoin has been able to leverage Bitcoin's trajectory, benefiting from the groundwork laid by the apex cryptocurrency, and stands to benefit from the “follower” effect.

Price Action: At the time of writing, Dogecoin was exchanging hands at $0.1083, down 8.6% in the last 24 hours, according to data from Benzinga Pro.

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Photo courtesy: Shutterstock

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