Hello everyone, I am Penny. Recently, Dogecoin's price soared over $0.43, mainly due to the return of whales and the increase of Dogecoin in small retail wallets.

Against the backdrop of a booming market, Dogecoin (DOGE) has become one of the best-performing assets this month. In just the past day, this old meme token broke through the $0.4 mark, returning to levels not seen since 2021 after a nearly 50% surge.

Currently, Dogecoin's weekly increase has exceeded 150%, climbing to sixth place in the cryptocurrency rankings, indicating a renewed interest from retail investors.

Retail interest drives Dogecoin

According to the latest on-chain analysis, Dogecoin processed over 6 million transactions last week, the highest transaction volume since February. This surge indicates that retail interest has quietly but steadily returned to the market. The spike in trading volume also suggests that the momentum of meme coins is far from fading.

Data also indicates an increase in Dogecoin's network activity. In the past four weeks, the number of new wallets has surged by 74,885, with less than 100,000 DOGE held, suggesting growing interest from small retail investors. This influx reflects a general trend of retail investors returning to Dogecoin, possibly due to the recent price rise.

However, although the number of retail wallets has increased, the number of larger wallets held by 'sharks' and 'whales' (often considered key stakeholders in price movements) has net decreased by 350.

Interestingly, in recent days, 108 of these larger wallets have re-entered the network, helping to push Dogecoin above $0.4.

To maintain sustained momentum, the ideal scenario is to see retail investors and large holders continue to accumulate Dogecoin together, as their combined influence can provide stronger market support for the asset.

In the coming days, the activities of these 'sharks' and 'whales' will be crucial for assessing whether the current momentum of the meme coin can maintain its upward trajectory or whether a shift in accumulation behavior will alter the outlook.

The wild journey of Dogecoin

The continued rise of Dogecoin can largely be attributed to the optimism brought about by billionaire Elon Musk's support during the Trump campaign, whose victory was the initial catalyst. This upward price trend has prompted some cryptocurrency traders to set a target price of $1 for Dogecoin—a significant milestone that has been under scrutiny since DOGE surpassed $0.7 in 2021.

Some analysts believe that a target range of $2 to $4 this cycle is realistic, while others even predict that Dogecoin will reach $30 by March 2025.

I am Penny A-penny8, a long-term coin holder enthusiast. I don't touch contracts and don't recommend leverage. I earn coins in bear markets and earn USDT in bull markets. If you are the same kind of person, then welcome to join Penny's team (no fees! No promotions! No return waves!).

Let's traverse the bull and bear markets together, huddle for warmth, and strive to be a rougher type of retail investor.