A massive reactivation of dormant Dogecoin (DOGE) tokens has been observed, with 5.8 billion tokens moving within the last 24 hours. This activity was highlighted by on-chain data shared by technical analyst Ali Martinez.
This unusual activity has coincided with a significant increase in DOGE’s Age Consumed metric, which measures the movement of long-inactive coins.
Data presented by Martinez reveals two major signals. The first is a substantial rise in the Age Consumed metric, indicating the transfer of old DOGE holdings. The second is a dramatic spike in daily circulation, reflecting heightened activity. Previously, the daily circulation of DOGE was approximately 1.67 billion tokens. However, this number spiked abruptly to 5.8 billion tokens.
The sudden transfer of billions of DOGE tokens is thought to suggest whale profit-taking, portfolio adjustments, or anticipation of upcoming market changes.
Historical Trends in Dogecoin Price Movement
Historically, spikes in the activity of long-dormant tokens have often preceded significant price changes. For example, during the first week of November, low Age Consumed metrics were recorded alongside daily circulation of less than 1 billion tokens.
In the second week of November, as Dogecoin’s price began a major bull run, the Age Consumed metric experienced a sharp increase. This coincided with over 5 billion DOGE tokens circulating daily.
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When Dogecoin’s price entered a consolidation phase, these metrics reverted to lower levels. However, the current spike in activity observed yesterday could indicate the potential for another major rally. Bitcoin’s recent rise to an all-time high of $107,800, before settling at around $106,000, adds further context. Historically, altcoins and meme coins like Dogecoin have exhibited significant price swings after Bitcoin stabilizes following a series of price increases.
At the time of writing, Dogecoin is trading at $0.3991, reflecting a 2% decline over the past 24 hours. The data suggests that this may be an opportunity for market participants to accumulate DOGE before a potential price surge. For context, Dogecoin experienced a 234% increase in just three weeks during November.
What Could Happen to Dogecoin’s Price?
Analysts have offered various predictions regarding Dogecoin’s potential price movement as bullish momentum builds.
Bitcoin analyst “Crow” has forecasted a straightforward path for Dogecoin to achieve a new multi-year high. He predicts an initial rise to $0.48, followed by a minor pullback, then further gains to $0.52, and eventually a climb toward $0.66.
Cantonese Cat, another analyst, has suggested that DOGE could soon break its all-time high of $0.74. This prediction is based on patterns observed during 2021.
Additionally, Crypto Scofield has expressed a more optimistic view, suggesting that Dogecoin’s current bullish momentum is even stronger than in November. A price of $3 has been projected to emerge “any time soon.”
