A “massive amount” of older Dogecoin (DOGE) have been starting to move out of wallets that had been dormant in a sign that the price of the meme-inspired cryptocurrency could soon change direction, even amid a growing trend of wallets with over 1 million OGE growing.
According to on-chain analytics firm Santiment, data from the Dogecoin network has shown the largest spike of older DOGE moving out of dormant wallets, at a time in which 121 new wallets with over one million tokens were created in a single month in a “sign of big money interest.”
The meme-inspired cryptocurrency has failed to keep up with the performance of other major digital assets this year, rising about 8% so far compared to the flagship cryptocurrency Bitcoin, which moved up nearly 125% year-to-date.
As CryptoGlobe reported, Dogecoin futures contracts’ open interest has also recently surged by around 40%, suggesting there’s heightened risk appetite among traders in a trend that has historically signaled local price peaks in the realm of cryptocurrency markets.
While a rise in open interest typically signals a bullish sentiment among futures traders, an excessively high or sudden spike can serve as a bearish indicator, hinting at an impending shift in market trends as traders potentially initiate short positions.
Earlier a popular crypto analyst known by the pseudonym Crypto Tony has predicted on the microblogging platform X (formerly known as Twitter) that DOGE could also see its price surge to around $0.085 from its current level of around $0.077, The analyst noted he believes the “party is about to begin” for meme-inspired cryptocurrencies, which are tokens that are known to benefit from cryptocurrency bull markets.
Back in 2021, search interest for Dogecoin exploded during the cryptocurrency’s massive 10,000% price rally, going from an average of 135,000 monthly searches in April 2020 to 16.5 million in April 2021.
Dogecoin was created back in 2013 as a joke. The cryptocurrency’s community is well-known for taking on philanthropic projects, which included helping charitable organizations. It made headlines in 2014 after raising more than $25,000 worth of DOGE to let the Jamaican bobsleigh team attend the Winter Olympics in Sochi.
Featured image via Unsplash.
