• Dogecoin price nearly slipped below $0.070 about two days ago before recovering to trade at $0.073.
  • Retail investors and small wallet holders' accumulation could prove to be a boon for the altcoin.
  • The rate at which DOGE changes hands since the last week has risen by over 450%.

Dogecoin price is holding above an important price point after noting a consistent decline for nearly a month. The meme coin leader falling to a two-month low triggered significant activity among a particular cohort, however, their impact on the bigger picture remains rather insignificant.

Dogecoin price bounces back

Dogecoin price, after a 20.89% decline since April 19, marked a swing low to $0.070 over the last four days. The meme coin grazed a two-month low before recovering slightly to trade at $0.073 at the time of writing. 

DOGE/USD 1-day chart

DOGE/USD 1-day chart

This recovery came after a sudden surge in the velocity of the altcoin, which is the rate at which DOGE changes hands. High velocity is usually suggestive of an active user base, which in the case of Dogecoin is significantly higher. Since May 11, the change in addresses has increased by 477%, from 3.2 to 20.8.

Dogecoin velocity

Dogecoin velocity

Most of this is the result of the increased activity among smaller wallet holders, which consists of a large number of investors. Addresses with a balance between 0.1 to 1 DOGE, 1 to 10 DOGE and 10 to 100 DOGE are three of the largest groups of addresses, collectively representing close to 2 million addresses. 

These sets of wallets have noted an increase in their balance that suggests they have been accumulating, collectively adding over 600,000 DOGE in the last week. However, in regard to the meme coin, this is relatively insignificant. The accumulation is worth a little over $42,000 and bears no impact on the price action whatsoever.

Dogecoin supply distribution

Dogecoin supply distribution

Change in Dogecoin price can be expected when large transactions worth more than $100,000 observe fluctuation, as that would be a sign of whale activity. As for what can be expected from price action going forward, investors should observe some caution since clear signs of recovery are not apparent.

The Moving Average Convergence Divergence (MACD) appears to be on the verge of a bullish crossover as the MACD line (blue) is nearing a cross over the signal line (red). But the Relative Strength Index (RSI) is still in the bearish zone below the neutral mark at 50.0.

Thus for the short term, a rise to $0.078 should be the next target. Coinciding with the 50-day Exponential Moving Average (EMA), flipping this level into a support floor could provide some strength to potential recovery.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

PEPE hits new all-time high, meme coin could extend gains

PEPE hits new all-time high, meme coin could extend gains

PEPE hit a new all-time high at $0.00001725 on Monday, May 27. The frog-themed meme coin noted a surge in active addresses and social dominance amidst rising price. 

More PEPE News

Fantom price could rally 20% but needs to test major support level first

Fantom price could rally 20% but needs to test major support level first

Fantom (FTM) price has lost some steam after the sharp increase registered from May 15 to May 20 but looks poised for further gains, technical indicators and on-chain data show.

More Fantom News

FLOKI, MAGA tokens post double-digit rally with bullish on-chain metrics

FLOKI, MAGA tokens post double-digit rally with bullish on-chain metrics

Crypto intelligence tracker Lookonchain identified a large wallet investor who has accumulated FLOKI (FLOKI) and MAGA TRUMP (MAGA) tokens, in exchange for Ether, since April 8. 

More Cryptocurrencies News

XRP ETF could gain approval in 2025, Ripple holders await lawsuit ruling

XRP ETF could gain approval in 2025, Ripple holders await lawsuit ruling

Ripple (XRP) holders are awaiting a ruling in the Securities and Exchange Commission’s (SEC) lawsuit against the payment remittance firm. A court ruling was awaited in May 2024, however there is no update, as of Monday, May 27. 

More Ripple News

Bitcoin: BTC struggles, but $80K is at striking distance Premium

Bitcoin: BTC struggles, but $80K is at striking distance

Bitcoin (BTC) price is in a good position to resume the bull rally despite the recent struggle. Optimism will restart if BTC overcomes a critical hurdle and flips it into a foothold. In such a case, the pioneer crypto will be slated to push to a new all-time high (ATH). 

Read full analysis