Following the renewed upward price strength of Dogecoin, the largest meme coin, there has been a significant uptick in adoption over the past few weeks, as evidenced by a recent notable rise in small DOGE wallets. As DOGE continues to attract more gains, the growth could help bolster its price and trigger future gains.
Wallets Holding 100,000 Dogecoin On The Rise
In an optimistic development, the number of wallets containing less than 100,000 DOGE has witnessed a sharp increase. Market intelligence and on-chain data platform, Santiment, reported the advancement on the X (formerly Twitter) platform, which has captured the attention of the community.
This noticeable increase in small wallets comes in light of growing market optimism, signaling a persistent rise in interest among smaller investors. It also reflects retail investors’ confidence in Dogecoin’s future price performance as they acquire the meme coin in tiny amounts, suggesting a robust sentiment toward DOGE fueled by improving market conditions.
Data from the market intelligence platform shows that there have been over 74,885 more wallets with fewer than 100,000 DOGE in the last 4 weeks. “Regardless of your take on meme coins, it has been impossible to ignore the ascension of crypto’s top meme coin,” the platform added.
It is important to note that while smaller investors have been accumulating DOGE, shark and whale wallets were seeing a decline, with a net decrease of -350 during this period. The drop in shark and whale wallets suggests a shift in large-scale investor behavior.
With the number of large-scale investors declining, the development could influence the price stability of DOGE in the short term due to their role in supporting price growth. However, in the past few days, about 108 wallets have returned to contribute to the most recent rally above the $0.40 mark for the first time in three and a half years.
Thus far, Santiment highlighted that its ideal scenario is for retail and major stakeholders to amass speculative-driven coins like Dogecoin jointly. As a result, the platform believes that “the next few days will be telling for sharks and whales” to maintain DOGE’s renewed price momentum.
DOGE’s Bullish Price Momentum In Jeopardy After Facing Strong Resistance?
Although Dogecoin is witnessing a spike in smaller wallets, the meme coin’s price seems to be losing its upside pressure. On Tuesday, DOGE’s price was seen moving downward after facing strong resistance at the $0.4355 level.
This drop has raised concerns about Dogecoin’s near-term price trajectory in the community. However, several crypto analysts believe that the dip is crucial for DOGE’s future growth.
As of today, the meme coin has fallen by nearly 10% in the last 24 hours, trading at $0.3762. Despite the notable drop, investors and traders continue to show confidence and interest in Dogecoin, as indicated by an over 38% increase in trading volume in the past day.
Featured image from Adobe Stock, chart from Tradingview.com
