Dogecoin has shown remarkable improvement over the past five days after a significant decline triggered by a broader market sell-off. In the first five days of August, the cryptocurrency experienced a keen declinefalling 38%, from $0.1348 to a low of $0.0831. However, DOGE showed resilience in the face of these challenges. After reaching $0.0831, the cryptocurrency began to make a significant comeback.

For the past five days, DOGE bounced back by around 25%, a rebound that has significantly lifted the price from recent lows. While this upward move was not yet enough for holders to fully recoup the losses incurred earlier in the month, it does show a return of positive momentum for DOGE.

The partial price recovery was accompanied by a rise in key market indicators, suggesting that investor sentiment towards Dogecoin is starting to turn bullish again. Trading volumes increased, indicating renewed interest and participation in the market.

Dogecoin’s main indicators trigger bullish signals

According to data from IntoTheBlockThis rally has been accompanied by an boost in daily trading volume, most of which has been accumulations that have increased buying pressure. At the time of writing, the enormous trading volume for USD DOGE stands at an impressive $1.01 billion. This represents a significant 54% boost from the seven-day low of $654.96 million recorded on August 3, just before the keen decline began.

Interestingly, the volume of enormous transactions peaked at $1.52 billion on August 5, coinciding with the beginning of the recovery. This correlation strongly suggests that enormous holders, often referred to as “whales,” were actively participating in the DOGE market during this recovery phase and driving the upward momentum.

While the Hefty Volume indicator does not show whether these are accumulations or sell-offs, the Vast Holder Net Flow to Exchange Net Flow ratio suggests that it is the former. This indicator tracks the balance between enormous holder accumulations and exchange inflows, offering valuable insight into the behavior of both retail investors and whales. The indicator currently tilts toward enormous holder accumulations, holding at 3.49%, down from a negative 1.85% on Monday, August 5.

Still on the subject of whale activity, IntoTheBlock’s Bulls and Bears indicator suggests that the tide is starting to turn in the bulls’ favor. This indicator tracks addresses that have bought or sold more than 1% of the total trading volume in the last 24 hours, classifying them as bulls or bears respectively. There has been a noticeable boost in bull activity over the past two days, with 14 bulls compared to 13 bears in the last 24 hours. While the margin may be tight, the presence of more bulls than bears indicates that buying interest is starting to outweigh selling pressure.

At the time of writing, DOGE is trading at $0.1045. A successful breakout above $0.11 could reignite retail interest, which in turn could contribute to growth towards the expected level of $0.5.

Featured image from iStock, chart from Tradingview.com