- Dogecoin price lost momentum after a massive rally in response to news of Elon Musk’s purchase of Twitter.
- The dog-themed crypto has sustained above the $0.063 level and yielded 10% gains over the past two weeks.
- Dogecoin trade volume exploded by 400% and ranked in the top ten cryptocurrencies by market capitalization.
Elon Musk, the CEO of Tesla Motors (NASDAQ:TSLA), brought the Twitter deal back to the table. The news of Musk’s interest in purchasing Twitter fueled a rally in the largest meme coin, DOGE. Elon Musk is a self-proclaimed Dogefather and a proponent of the meme coin.
According to an October 4 securities filing, Musk declared his intentions to follow through with his purchase of Twitter and tweeted about the same. This act fueled a bullish sentiment among Dogecoin holders, and the trade volume of the meme coin exploded.
Spike in trade volume and whale transactions are two indicators of a bullish trend reversal in a cryptocurrency. Data from Santiment revealed a surge in large-volume transactions on Dogecoin. With upwards of $800 million in trade volume, Dogecoin ranks in the top 10 cryptocurrencies.
Dogecoin’s price trend reversed, and the asset witnessed a decline after its bullish momentum ended. While the Dogecoin price has sustained above the $0.063 level, the meme coin nosedived from the 24-hour of $0.66.
The spike in whale transactions coincided with a local top in Dogecoin price. Analysts at Santiment identified the local top as where funding rates went ultra-long, and whales moved over 449 million DOGE.
Dogecoin Local Top Coincides with Spike In Whale Transactions (Source: Santiment)
Despite the trend reversal, analysts remain bullish on the meme coin in the bear market. Commission-less trading platform Robinhood (NASDAQ:HOOD) is holding 40.95 billion DOGE worth $2.4 billion on behalf of its investors. This represents 30.87% of Dogecoin’s circulating supply.
Based on the chart above, the massive spike in trade volume represents the most action that DOGE witnessed over the past week. DOGE/BTC price chart reveals that the Shiba Inu competitor rallies once every 30 weeks. 26 weeks have passed since the previous bullish breakout in DOGE/BTC, and Dogecoin is closer to another upswing in the next four weeks.
DOGE-BTC price chart
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