Woah! Dogecoin Whales Made 523 Transactions as DOGE Soars 34%!
- Mridul Srivastava
- February 1, 2023
- 0 Comments
The recent surge in Dogecoin’s value is clear evidence that risk is still highly sought-after. But it’s not just risk-takers driving the meme asset up – the increased activity of whales suggests that the market’s full of profit-taking as well.
The most recent surge to $0.1, a high psychological resistance level for Dogecoin, is likely tied to additional funding of preexisting positions rather than pure risk-taking or speculation. Since December, Dogecoin has been up 40% – a strong performance, especially for an asset like this whose only real backing comes from the meme status it’s achieved.
Could Twitter be the next new home for Dogecoin?
With the rumoured possibility of Dogecoin being implemented as a payment method on Twitter, speculators have quickly pushed the price up. The future of DOGE is yet to be determined. Though the progress has not been easy so far, the possibility of a lasting outcome still exists.
Its growth has been driven by speculation, not fundamentals, so its value is characteristically unstable. Whenever Musk comments on cryptocurrency adoption, the market experiences a major surge in transactions and Dogecoin purchases. Before, those gains quickly dissipated due to an inherent lack of sustained funding sources.
But there could be a new funding source, thanks to Elon Musk. Rumours are circulating that Twitter is preparing to implement digital assets, and Musk has indicated his intent to make Dogecoin usable on the platform. If this happens, it could be hugely beneficial for DOGE and propel its market value past previously-unseen levels. Without any signs of growth, DOGE is nearing a ‘golden cross’, a technical signal that may help it bounce back from its current lows.
It’s certainly an exciting time for Dogecoin, regardless of the plausibility of the rumour!