Dogecoin Sees Surge in New Wallets as Crypto Market Experiences Mixed Signals

The cryptocurrency market has kicked off 2025 with a rollercoaster ride of price fluctuations, and on-chain analysis firm Santiment has been tracking the trends. According to their latest findings, Dogecoin (DOGE) has gained over 29,000 new wallets since January 1, indicating a growing interest in the meme coin.

Whales Accumulate Bitcoin, But Trading Volumes Decline

While Dogecoin is experiencing a surge in new wallets, other major cryptocurrencies are also showing signs of growth. Ethereum (ETH) and XRP have seen significant increases in holder numbers, with a +645K jump in Ethereum wallets and a +58K increase in XRP wallets. Bitcoin (BTC) has maintained a steady growth, with a +102K bump in wallets. However, Chainlink (LINK) has seen a decline in holder numbers, with a 3.3K drop.

Despite these positive trends, Santiment notes that overall trading volumes across the crypto landscape have been declining since mid-December 2024. This decline is attributed to seasonal factors, diminished whale activity, and uncertainties regarding impending regulatory changes. The daily trading volume for the top 10 cryptocurrencies has dropped by an average of 13% over the past two weeks, with Ethereum experiencing the steepest decline at 17%.

MVRV Metric Suggests Opportunities for Contrarian Buyers

Santiment’s analysis also highlights the MVRV (Mean Value to Realized Value) metric, which tracks average trader returns. Currently, the 30-day returns for most active wallets across top assets are in negative territory, suggesting potential opportunities for contrarian buyers. Dogecoin’s MVRV is at -8.89%, indicating a “blood in the streets” moment.

Regulatory Changes and Whale Behavior to Shape Market Dynamics

Looking forward, Santiment emphasizes a multifaceted market environment influenced by regulatory changes, institutional strategies, and varying degrees of risk appetite. The firm calls attention to pro-crypto sentiment in the incoming Trump administration, tighter regulations in global markets, and the evolving role of large-scale investors (“whales”) in shaping price dynamics.

DOGE’s Technical Picture: A Critical Rebound

From a technical perspective, Dogecoin has mirrored Bitcoin’s recent trajectory, experiencing a dip below crucial Fibonacci levels on the 4-hour chart. DOGE slipped beneath the $0.373 mark (0.5 Fibonacci level) and then tested the $0.346 threshold (0.382 Fib). Price action ultimately found temporary relief at the 0.236 Fib line near $0.314, where DOGE bounced, again tracking Bitcoin’s rebound. Reclaiming the 0.382 Fib (approximately $0.346) is critical to regaining bullish momentum.

Conclusion

In conclusion, the cryptocurrency market is experiencing mixed signals, with some assets showing signs of growth while others are declining. Dogecoin’s surge in new wallets is a positive trend, but the decline in trading volumes and negative MVRV metric suggest caution. As the market navigates regulatory changes and whale behavior, it’s essential to keep a close eye on market dynamics and technical analysis to make informed investment decisions.

#Ethereum #Web3 #CryptoExchange #Stablecoin

Please follow and like us: