The CEO of Tesla Motors (NASDAQ:TSLA), Elon Musk, brought back the Twitter deal. The biggest meme coin, DOGE, went up in price when people heard that Musk was interested in buying Twitter. Elon Musk calls himself the “Dogefather” and backs the meme coin.
In a securities filing on October 4, Musk said that he planned to go through with his plan to buy Twitter. He also tweeted about this. This action made Dogecoin owners feel more optimistic, and the number of trades of the meme coin went through the roof.
A bullish trend reversal in a cryptocurrency is shown by a rise in the number of trades and large transactions by “whales.” Data from Santiment showed an increase in the number of large Dogecoin transactions. Dogecoin is one of the top 10 cryptocurrencies, with trades worth more than $800 million.
Related: Dogecoin is now the second-biggest Proof-of-Work cryptocurrency.
After the bullish momentum for Dogecoin ended, the price trend changed and the asset went down. Even though the price of Dogecoin has stayed above $0.063, the meme coin has lost a lot of value since it was worth $0.66 for 24 hours.
Whale transactions went up at the same time that the price of Dogecoin reached a local peak. Santiment analysts discovered that the local peak was where funding rates went super-long and whales moved over 449 million DOGE.
Dogecoin’s local peak matches a rise in whale transactions (source: Santiment)
Even though the trend has changed, analysts still think the meme coin will go up in the bear market. Robinhood (NASDAQ:HOOD), a platform for trading without fees, is holding 40.95 billion DOGE, which is worth $2.4 billion, for its investors. This is 30.87 percent of all the Dogecoins in circulation.
Based on the chart above, the huge jump in trade volume is the most activity DOGE has seen in the last week. The DOGE/BTC price chart shows that the Shiba Inu competitor has a rally once every 30 weeks. Since the last bullish breakout in DOGE/BTC, it has been 26 weeks, and Dogecoin is likely to go up again in the next four weeks.
Price chart for DOGE to BTC
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Related: A dogecoin lawsuit against Elon Musk, valued at $258 billion, grows
