Dogecoin Price Spikes 2% as 5.8 Billion Idle DOGE Tokens Come to Life

Dogecoin price has spiked by 2% in the last 24 hours as Bitcoin records a 4% increase over the same period.

Dogecoin price saw a 2% increase in the last 24 hours, with the meme coin trading within a range of $0.39 and $0.41. The development comes as Bitcoin price increased by 4% in the same period.

According to CoinGecko, Dogecoin price varied between $0.39 and $0.41 in the past 24 hours. The meme coin recorded a 2% price increase in the same timeframe.

This comes after DOGE lost close to 6% in the past week despite Bitcoin’s stellar rally. However, on-chain data seems to be revealing a positive trigger for Dogecoin price.

On-chain analyst Ali Martinez shared a Santiment chart that highlights a massive addition to Dogecoin circulation. As per the chart, 5.8 billion DOGE were moved in the past 24 hours.

Increased token circulation could be a positive sign for Dogecoin price

The billions of Dogecoin tokens that were added to circulation were previously idle tokens that became active as they were transferred. Such movements, especially from long-held tokens, could either indicate profit-taking or repositioning by large holders or whales.

In this case, considering that we see a spike in circulation alongside a price surge, it could also be signaling increased speculative activity.

Moreover, to gain further insight into Dogecoin’s price movement, on-chain analysis is crucial. Relative Strength Index (RSI) can provide valuable cues. At press time, DOGE’s RSI is in the neutral zone, indicating that the meme coin is neither overbought nor oversold.

Since November, the RSI reveals a gradual decline from the overbought territory, suggesting that the price cooled off over the month. However, the RSI now seems to be indicating a slight reversal upward, which could signal some buying momentum in the coming days.

According to Coinglass, exchange net flows also reveal a holding behavior. The net exchange flows on December 16 indicate that more DOGE was withdrawn than deposited into exchanges, with the net flows hitting -$67.35 million.

The negative net flows could also be reducing the selling pressure or at least stabilizing the price. Notably, as we can see, DOGE was not part of the $100K Bitcoin price rally and did not experience a similar ripple effect on the meme coin price.

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