Memecoin is getting its share of attention from traders as Bitcoin and Ethereum start recovery run
The creator of Dogecoin Underline the massive spike in the number of on-chain transactions as the metric suddenly hit close to 70,000 transactions in the past 24 hours.
The spike in the number of transactions on Doge was followed by the unexpected recovery of the cryptocurrency market. Ethereum and Bitcoin were on the rise during the weekend trading session as the two biggest cryptocurrencies gained 11% and 6%, respectively.
When it comes to DOGE’s price performance, the same currency is gaining around 5% of its value, which is a slight gain for such a volatile asset. The potential reason for the increased number of transactions on the Dogecoin network could be increased whale activity.
With the market showing some signs of recovery, whales are potentially staking more DOGE ahead of a potential recovery run. For the first time in the last five months, Dogecoin formed a higher low during its movement, showing a potential reversal on the market.
The massive increase in the number of transactions on the network could also be a sign of upcoming selling pressure in the market, as whales could potentially start transferring their funds from cold wallets to exchange addresses.
In this case, Dogecoin’s small recovery run would be over almost immediately as there is not much volume on the market that could absorb another spike in selling pressure. The memecoin has been moving in a sharp downtrend for more than a year after hitting an ATH back in May 2021.
At press time, Dogecoin is trading at $0.066 and showing a price increase of around 15% over the last seven trading days.
