Dogecoin rises 2% as 5.8 billion tokens change hands

Dogecoin Price Surge Driven by Increased Token Circulation

In the past 24 hours, Dogecoin's price has witnessed a 2% uptick, ranging between $0.39 and $0.41. Market data indicates a significant movement of 5.8 billion DOGE tokens that were previously inactive.

This surge follows a sluggish week during which Dogecoin lost nearly 6%, failing to capitalize on Bitcoin's recent gains. However, increased token circulation and reduced exchange net flows suggest growing speculative interest and a holding mindset among investors.

Dogecoin's Investor Activity

Over the last 24 hours, Dogecoin's price has experienced a 2% spike, while Bitcoin recorded a 4% increase during the same period. According to CoinGecko, the meme coin's price has fluctuated between $0.39 and $0.41. This rise comes after DOGE's 6% decline in the past week, despite Bitcoin's remarkable rally.

The recent price boost for Dogecoin appears to be driven by increased token circulation. On-chain analyst Ali Martinez shared a Santiment chart indicating that 5.8 billion DOGE tokens have re-entered circulation.

Possible Impact of Token Movement

These previously inactive tokens have recently become active and are being traded. Such movements, especially when involving long-held tokens, can indicate profit-taking or repositioning by large holders. In this case, the surge in circulation coincides with a price increase, suggesting increased speculative activity.

RSI and Net Exchange Flows

Dogecoin's Relative Strength Index (RSI) is currently in a neutral range, neither overbought nor oversold. Since November, the RSI has been trending downwards from overbought territory, reflecting the price correction over the month. However, a recent uptick in the RSI signals potential buying momentum in the upcoming days.

Coinglass data also indicates a holding behavior, with more DOGE being withdrawn from exchanges than deposited. This negative net flow may alleviate selling pressure or at least stabilize the price. Notably, DOGE did not participate in Bitcoin's recent surge to $100,000 and has not experienced a comparable ripple effect.

Amidst the sluggish DOGE price performance, co-creator Billy Markus has emphasized the coin's original purpose. In a post on X, he stated, "Everything after dogecoin saw dogecoin's success and was made to make money, so none of them have the same soul."