5.8 Billion Dormant Dogecoin Reactivate: How Will DOGE Price React?

Dormant Dogecoin (DOGE) tokens have surged into activity as 5.8 billion tokens moved within the past 24 hours, according to on-chain data shared by technical analyst Ali Martinez.

This significant reactivation aligns with a spike in DOGE’s Age Consumed metric, which tracks the movement of long-inactive coins.

Specifically, the chart shared by Martinez reveals two key signals: a massive increase in Age Consumed, indicating that old DOGE holdings were transferred, and a major rise in daily circulation, reflecting active token movement. 

Previously, the daily circulation of DOGE was around 1.67 billion tokens, but an abrupt spike was observed to 5.8 billion tokens.

The sudden transfer of billions of DOGE could signify whale profit-taking, portfolio restructuring, or anticipation of upcoming market developments.

Dogecoin Price Action in Previous Instance

Historically, such spikes in long-dormant token activity have been precursors to notable price movements. For instance, in the first week of November, the Age Consumed metric was low, while daily circulating DOGE tokens were less than 1 billion.

As the price of DOGE commenced a major bull run in the second week of November, the Age Consumed metric saw a massive spike, aligning with over 5 billion DOGE tokens circulating.

However, as Dogecoin’s price began consolidating, these metrics reversed to lower levels until the current major spike observed yesterday.

This suggests that Dogecoin’s price could be set for another major rally in the coming days, especially as Bitcoin continues to break new all-time highs. Bitcoin reached around $107,800 on Monday evening before settling at around $106K at press time.

Typically, altcoins and meme coins see their most significant price swings when Bitcoin stabilizes after consecutive days of price pumps.

At press time, Dogecoin is trading at $0.3991, reflecting a 2% drop over the past day. Essentially, the recent data suggests that market participants may still have an opportunity to accumulate Dogecoin cheaply before its next run. For context, Dogecoin soared by 234% within three weeks in November.

How Will Dogecoin Price Go?

Several analysts have provided inputs concerning how Dogecoin’s price could move when the bull momentum resumes.

Bitcoin analyst “Crow” predicts a straightforward path for Dogecoin to hit a new multi-year high following its rebound from $0.36. He expects the price to first rise to $0.48, face a minor pullback, then climb toward $0.52 before targeting $0.66. 

Similarly, Cantonese Cat suggests DOGE may break its all-time high of $0.74 soon, citing patterns from 2021.

Other analysts, like Crypto Scofield, agree that Dogecoin’s bullish momentum is stronger than in November, projecting a $3 to surface “any time soon.”