In brief
Dogecoin notes a 3% recovery bounce after dropping 16% from the August 24 peak of $0.245.
Key fundamental developments for Dogecoin include the Trump family-linked Thumzup acquiring a Dogecoin mining company amid pending approval of a spot Dogecoin ETF.
Experts suggest an uptick in whale activity and a surge in whale wallets is bullish for the long-term outlook of the meme coin.
On-chain metrics show large Dogecoin holders are accumulating the asset during the recent market correction, a move experts say could be driven by more than headline-fueled speculation.
Dogecoin has rebounded from Mondayโs low of $0.205 and is currently trading at $0.211, according to price aggregator CoinGecko. The recovery comes after the dog-based meme coin dropped nearly 16% from its August 24 high of $0.245, aligning with the broader crypto market correction.
Despite the recent market turmoi, on-chain metrics showcase improving fundamentals.
The 50-day average of large Dogecoin transfers, valued at $100,000 or higher, has seen a notable increase in August, reaching its highest level in five months, according to Santiment.
The total number of wallets holding 1 million to 10 million DOGE also grew by 33 to 4,288 in August.
โThese indicators signal the accumulation from larger players who spot value in Dogecoin at its current levels,โ Shawn Young, chief analyst of MEXC Research, told Decrypt.
Considering the current market conditions, Young cautioned of a potential short-term pullback amid โlong-run investors positioning for potential upside.โ
One of the reasons for this heightened activity from large investors could be the involvement of Trumpโs family in acquiring a Dogecoin mining company last week.
โThe Trump-family-linked deal may have helped spark attention, but the scale of whale wallet growth in itself suggests something beyond just headline-driven speculation,โ Young highlighted.
Under President Donald Trumpโs administration, the U.S. regulatory climate has become more tolerant of crypto. As a result, institutional investors are seeking higher returns in tokens such as Ethereum, Solana, Aave, and others.
Although Grayscale filed a spot Dogecoin ETF application, it hasnโt yet been approved.
Unlike Bitcoin, Ethereum, and other cryptocurrencies, Dogecoin is a โcultural asset,โ says Young, highlighting the tokenโs โability to rebound during downturns.โ
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