Dogecoin (DOGE) price is up today as the broader crypto market experiences a mild recovery.
DOGE price has climbed over 4% over the last 24 hours to an intraday high of $0.1267 on June 19, outperforming the crypto market, which rose by around 1.85% in the same period.
This performance in DOGE price is backed by a mix of fundamental and onchain metrics, including increasing trader sentiment and whale activity.
Let’s investigate the factors driving DOGE’s price today.
DOGE’s rally backed by recovery in memecoins
Dogecoin’s (DOGE) price surge today is part of a broader uptrend in the memecoin sector, highlighting a diversion from the momentum that drove the sector lower over the last few days.
Data from CoinMarketCap shows that the total market capitalization of memecoins has risen by 5.43% to $47.8 billion in the last 24 hours. The daily trading volume has decreased 13% to $5.1 billion, suggesting that few investors are buying at lower levels.
Other leading memecoins, such as Shiba Inu (SHIB) and Pepe (PEPE), rallied 3.9% and 10.5%, respectively, on the daily timeframe.
Brett (BRETT), a memecoin built on the layer 2 Base network, rallied the most among the top-cap memecoins, adding 22.21% to its market value over the last 24 hours. Floki (FLOKI), Bonk (BONK) and Book of Meme (MEME) were among the top gainers, increasing by 5.5%, 4.6% and 4.7% over the same period.
An uptick in trading activity over the last few hours supports the increase in the price of Dogecoin and other memecoins, suggesting that investor interest has been rekindled.
Data from markets tracker Coinglass shows that DOGE's spot trading volume has increased by 45% over the last four hours to reach $0.83 billion.
The following heatmap gives a detailed breakdown of the trading activity, revealing that the volume on Binance accounted for 25%
The substantial increase in trading volume indicates renewed interest and activity around Dogecoin, suggesting that traders are closely monitoring its price movements.
Analysts turn bullish on DOGE
YouTube analyst and X user CryptoJack observed that buyer congestion around the $0.120 support zone stopped Dogecoin's recent sell-off.
“The price of $DOGE is at a crucial point,” the analyst declared to their over 328,000 followers in a June 19 post on X social media platform.
They shared the following chart showing DOGE price trading within a demand zone just above $0.120, suggesting that this level is an important support for the memecoin.
“DOGE needs to close the weekly candle above $0.13 to remain bullish and break the triangle formation to the upside. ”
Fellow analyst Jake Wujastyk spotted the DOGE price retesting a key support level around $0.120, which coincided with an ascending trendline.
This meant if the price successfully bounced above the “trend zone,” it was likely to move higher.
Source: Jake Wujastyk
Meanwhile, market intelligence firm Santiment analyzed the 30-day market value realized value (MVRV) ratio of seven of the top ten cryptocurrencies by market capitalization and found DOGE to be “very bullish.”
In a June 19 post on X, Santiment shared the following chart saying,
“Almost all of crypto is in the undervalued region, according to average trader returns.”
Santiment analysts found the MVRV of DOGE to be very low at -16.7%, which basically means “very bullish.” As such, this coin has the highest chance of seeing a short-term rise in price.
Whale activity backs DOGE’s rally
After the latest marketwide correction that saw billions of dollars liquidated, DOGE sank as low as $0.1138 and is currently 18% down on the weekly timeframe. However, the uptick in whale transaction volume marks a bullish signal for Dogecoin.
Whale transactions are large transactions that involve the transfer of $100,000 or more worth of DOGE. According to onchain data analytics firm IntoTheBlock, the number of DOGE transactions worth between $100,000 and $1 million has increased by approximately 35% over the past three days.
Similarly, the data also shows that the number of DOGE transactions larger than $1 million has increased by more than 600% in the last 14 days.
This increase in whale activity shows the confidence large investors have in the network, a trend that appears to move in tandem with the price of the target memecoin by market capitalization.