A massive spike in Dogecoin (DOGE) activity could signal bullishness for investors

As market fears intensify, several cryptocurrencies have experienced sharp price declines. Amid the chaos, there has been a significant increase in Dogecoin activity.

The OG meme coin saw its largest increase in active DOGE addresses in the past six months according to new data. The whales also seem to be holding out, which could mean a much-needed rebound in DOGE’s price.

Active Dogecoin addresses are increasing

According to popular crypto analyst Ali Martinez, the number of active addresses increased to 84,306, indicating a resurgence of user participation and interest within the Dogecoin community.

This increase may indicate potential bullish sentiment among investors, as increased activity often correlates with increased trading and accumulation patterns.

At the time of writing, DOGE is trading near $0.10. It fell nearly 11 percent on Wednesday amid a broader market slide triggered by the escalating conflict in the Middle East. The latest correction has wiped out the gains it made in late September.

Do DOGE whales rely on rebounding?

Since hitting a recent peak on Saturday, Dogecoin is down 18%. Despite this sharp pullback, activity in the chain suggests that the big investors, or whales, may still be positioning themselves for further bullish momentum.

Although many whales made profits just before Dogecoin reached its peak, its increased activity on the network is still evident, as found by crypto-analytics platform Santiment.

In fact, the data revealed that 63,689 active wallet addresses on the Dogecoin network completed a significant number of transfers in just three days. This represented the highest level of address activity for DOGE since April. In addition, 1,203 whale transactions occurred just before the price peaked on September 28, marking the most intense whale activity since late May.

This continued involvement of whaling entities indicates that they may be preparing for a turnaround, suggesting that the recent downturn may be temporary.

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