Dogecoin Million Dollar Transactions Soar After Trump Inauguration, Is A Bounce Coming?

The Dogecoin network has seen a significant increase in activity following the inauguration of US President Donald Trump. Although this increase in activity across the entire industry, on-chain data has revealed an interesting dynamic among Dogecoin holders. This development was brought into focus by cryptoanalyst Ali Martinez, who, using data from analytics platform Santiment, highlighted a notable increase in high-value transactions on the Dogecoin network. According to MartinezDogecoin recorded an impressive 588 transactions that exceeded $1 million in the last 24 hours.

Dogecoin renewed interest from million-dollar transactions

The recent surge in large Dogecoin transactions suggests that possibility of a significant recoveryas this activity typically indicates a liquidity bottom that initiates upward momentum. Historically, an increase in high-value transactions is associated with renewed investor confidence, especially when market sentiment shifts toward bullish trends.

In the case of Dogecoin, the transactions in question are not only significant, but unusually significant, each exceeding $1 million. What makes this rise even more compelling is the timing, as it coincides with the bullish sentiment surrounding Donald Trump’s inauguration. Therefore, the current increase in transactions appears to be more indicative of accumulation rather than divestment or profit.

The entire crypto market is currently in a bullish phase, with smart money getting in early in anticipation of a pro-crypto environment under the new Donald Trump administration. This lends further credence to the idea that these transactions could be more of accumulations than divestments. Although some of the activity includes sell-offs, the prevailing bullish sentiment suggests that such events may be short-lived and quickly absorbed by the market’s positive momentum.

Dogecoin is takes off on social mediathat has received over 500,000 mentions on platform X within the last 24 hours. This is due to the newly created Department of Government Efficiency, which shares the same acronym as Dogecoin’s ticker (DOGE), which has contributed to considerable enthusiasm. Increased visibility on social media often translates into increased retail participation, which can create a combined effect with whale activity to drive the price higher.

DOGE Price Analysis: A New Multi-Year Bullish Pattern

IN another technical analysisnoted Martinez that DOGE acts within a multi-year period ascending parallel channel on the weekly candlestick time frame. The ongoing bull market took off after Dogecoin bounced back from the lower trendline in the channel at the end of 2023, and the meme coin has been trading in an upward direction since then. The sustained rise along this channel suggests that DOGE could maintain its bullish trajectory over the longer time frame.

In terms of a price target, the chart pattern projects a bullish target of $15 at the upper trendline of the ascending parallel channel. At the time of writingDOGE is trading at $0.343, meaning hitting this target would represent a extraordinary increase of 4,273%. from its current price level.

Featured image from Unsplash, chart from Tradingview.com