Dogecoin’s price has seen a significant decline this week, at times by more than 20%, from a high of $0.1321 on Saturday to a low of $0.1026 on Tuesday. Despite this decline, on-chain metrics and expert analysis suggest a potentially bullish future for the popular meme coin.

Dogecoin price remains bullish

Santiment, a network analytics company provided that a detailed breakdown of Dogecoin’s activity via X today, indicating sturdy participation by large-scale holders, called whales, in the cryptocurrency network. “Dogecoin has retreated -18% from its peak on Saturday. However, activity on the chain indicates that the whales may not be enough with all the bullish momentum of the cryptocurrency’s most popular meme coin. Although they made a profit just before the peak, their activity on the DOGE network remains very high,” Santiment reports.

The analyst firm also highlighted the augment in Dogecoin network activity, noting that Dogecoin just hit a 7-month high in address activity and a 4-month high in whale transactions, while retail transactions surged amid the price decline.

Over the last three days, 63,689 DOGE addresses transferred coins, the highest period since April 2-4. Moreover, 1,203 whale trades (>$100,000) preceded Dogecoin’s local price peak on September 28. This marks the highest whale activity since May 26–28.

Cryptocurrency analyst Ali Martinez highlighted the massive activity on the network through X. Martinez stated: “The Dogecoin network is experiencing significant growth! Over the past week, the number of new DOGE addresses has increased by 72%, with 19,630 new DOGE addresses created yesterday alone!”

The cryptocurrency analyst further reinforces the bullish sentiment around Dogecoin with technical analysis. Martinez emphasizes that DOGE may be approaching a bullish MACD crossover on the weekly chart, a potential indicator of upcoming price increases. “The last two times Dogecoin DOGE had a bullish MACD crossover on the weekly chart, it was up 90% and 180% respectively. There may be a new bullish MACD crossover soon!” he explained.

MACD, or moving average divergence, is a key tool of technical analysis. It consists of two lines: the MACD line, which is the difference between the 26-period and 12-period exponential moving average (EMA), and the signal line, which is the 9-period EMA of the MACD line. A bullish crossover, where the MACD line crosses above the signal line, typically signals a change in the market trend from bearish to bullish, often interpreted as a buy signal.

Another well-known cryptocurrency analyst, Luciano, did just that pointed to break out of the descending channel on the daily chart. He advises his 2.2 million followers on X: “DOGE has been on a decent run lately and looks like it will continue. In my opinion, declines are for buying, and DOGE will have a spectacular season this cycle. DYOR-NAFA”

At press time, DOGE was trading at $0.1087.

Featured image created with DALL.E, chart from TradingView.com