The cryptocurrency market is showing signs of recovery, with Dogecoin (DOGE) bouncing back from multi-month lows. In the past 24 hours, the price of Dogecoin has surged by 12.67%, reaching $0.3379. On-chain data suggests that there is more upside potential for DOGE in the near future.
One of the positive signals for Dogecoin is the 9.6% increase in trading volume, with over $11.6 billion worth of DOGE traded in a single day. This significant volume indicates that there is sufficient liquidity to support a price rally for the meme coin. Despite dropping from $0.4109 to $0.27 over the past week, Dogecoin has yet to reach its weekly high, leaving room for further growth as the market continues to recover.
On-chain indicators also point to heightened activity within the Dogecoin ecosystem. Whale transactions, which account for Dogecoin transactions worth at least $100,000, have surged by 41.12% to $23.35 billion. This increased activity from institutional investors could fuel a swift recovery in the price of DOGE, allowing it to cover the losses from the previous week.
In addition to the price surge, there are key fundamentals to keep an eye on for Dogecoin. There have been speculations about a potential Dogecoin ETF becoming a reality, particularly with the positive shift in the regulatory landscape in the U.S. While no asset manager has formally filed for a DOGE ETF, experts believe it is a possibility. Furthermore, Dogecoin remains oversold on various timeframes, and positive sentiments surrounding Bitcoin retesting its all-time high could drive momentum for the meme coin.
If Dogecoin manages to flip the $0.35 resistance level into support, it could potentially reclaim the $0.4 price mark in the short term. As the market continues to recover and on-chain indicators show increased activity, DOGE could be gearing up for a strong resurgence in the coming weeks. With the support of institutional investors and potential developments such as a DOGE ETF, there are optimistic signs for the future of Dogecoin in the cryptocurrency market.
