Dogecoin has shown a remarkable recovery over the past five days after a significant downturn triggered by a broader market sell-off. During the first five days of August, the cryptocurrency experienced a sharp decline, plummeting by 38%, dropping from $0.1348 to a low of $0.0831. However, DOGE has demonstrated resilience in the face of these challenges. After hitting the $0.0831 mark, the cryptocurrency began to stage a notable comeback.
Over the last five days, DOGE has rebounded by approximately 25%, a recovery that has lifted its price significantly from its recent lows. Although this upward movement has not yet been sufficient for holders to fully recoup the losses incurred earlier in the month, it shows the return of positive momentum for DOGE.
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This partial price recovery has been accompanied by a resurgence in key market metrics, suggesting that investor sentiment towards Dogecoin is beginning to turn bullish once again. Trading volumes have increased, indicating renewed interest and participation in the market.
Dogecoin Major Metrics Fire Bullish Signals
According to data from IntoTheBlock, this recovery has been accompanied by a surge in daily trading volume, with majority of them being accumulations which have increased the buying pressure. At the time of writing, the volume of large transactions 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, right before it kickstarted its sharp decline.
Interestingly, the large transaction trading volume reached a peak of $1.52 billion on August 5, coinciding with when the recovery began. 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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Although the large transaction volume metric does not show whether they are accumulations or selloffs, the large holders netflow to exchange netflow ratio suggests the former is the case. This metric tracks the balance between large holder accumulation and inflows into exchanges, offering valuable insights into the behavior of both retail investors and whales. Currently, the ratio is tipping towards large holder accumulation, standing at 3.49%, compared to a negative 1.85% recorded on Monday, August 5.
Still on whale activity, IntoTheBlock’s…
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