Dogecoin rises 2% as 5.8 billion tokens change hands

Dogecoin’s price rose by 2% in the past 24 hours, trading between $0.39 and $0.41. Data suggests that 5.8 billion previously idle DOGE tokens were recently moved. The surge comes after a sluggish week where the meme coin lost nearly 6%, missing out on Bitcoin’s recent gains.

Increased token circulation and reduced exchange net flows suggest growing speculative activity and holding behavior among investors.

Dogecoin sees increased investor activity

Dogecoin price has spiked by 2% in the last 24 hours as Bitcoin records a 4% increase over the same period. According to CoinGecko, the meme coin is maintaining a 24-hour price range between $0.39 and $0.41. The rise comes after DOGE lost close to 6% in the past week despite Bitcoin’s stellar rally.

What seems to be the positive trigger for Dogecoin price is increased token circulation over the past day. According to the Santiment chart shared by on-chain analyst Ali Martinez, 5.8 billion DOGE were added to circulation.

5.8 billion idle #Dogecoin $DOGE tokens have come to life, changing hands in the past 24 hours. pic.twitter.com/4gSkVhAAcO

— Ali Charts (@alicharts) December 16, 2024

The millions of Dogecoin tokens were previously idle tokens that recently became active as they were transferred. This kind of movement, particularly from long-held tokens, can signal either profit-taking or repositioning by large holders or whales. Notably, as we see a spike in circulation alongside a price surge, it could also mean increased speculative activity.

Dogecoin could join the Bitcoin price rally a little late

We also looked at Dogecoin’s Relative Strength Index (RSI) to get more cues on its price movement. The RSI is in the neutral zone at press time, which means it is neither overbought nor oversold. Since November, the RSI has been moving downward from the overbought territory indicating that the price cooled off over the month. However, the RSI is now indicating a slight reversal upward, which could signal some buying momentum in the coming days. Coinglass data also reveal a holding behavior.

The net exchange flows on December 16 is -$67.35 million, indicating more DOGE was withdrawn than deposited into exchanges. The negative net flows could also reduce the selling pressure or at least stabilize the price. Considering DOGE was not part of the $100K Bitcoin rally and did not experience a similar ripple effect on the meme coin price.

Amid a sluggish DOGE price performance, co-creator Billy Markus defended DOGE’s original purpose. He said in a post on X, “Everything after dogecoin saw dogecoin’s success and was made to make money, so none of them have the same soul.”