Dogecoin has shown significant resilience, rebounding after falling to $0.21, and ultimately closing at $0.22 under a surge in trading volume and strong purchases from major investors. Despite ongoing security risks with Qubic, Dogecoin still achieved a rebound. Notably, trading volume increased significantly at the close, driving up the price and attracting investor attention.

Development background

After discussions about the potential 51% attack threat on Qubic, Dogecoin's volatility has intensified this month. Some investors have chosen to sell as a result. However, blockchain data shows that major holders of Dogecoin purchased a total of 680 million Dogecoins in August, which helped offset the impact of these sell-offs. Overall market sentiment remains mixed.

While core digital assets like Bitcoin and Ethereum are consolidating at high levels, the volatility of community-driven digital assets has increased. Dogecoin saw a significant reversal driven by large investors buying in, despite many small investors selling their positions.

Price movement and volume analysis

As of 4 AM on August 21, in the past 24 hours, the price of Dogecoin (DOGE) rose by 5%, recovering from $0.21 to close at $0.22. The token had fallen to a low point on August 20 at 4 PM Turkey time but then quickly rose. Notably, trading volume reached 9.29 million in the last hour, indicating that trading scale has reached enterprise level.

Analysts emphasized the impact of large purchases, commenting that 'accumulating 680 million DOGE in August indicates that despite the ongoing Qubic threat, large participants still wish to stay in the market.'

Technical outlook and observation levels

From a technical analysis perspective, the $0.21 level is the key support level for the day. During the trading session, this area experienced strong selling pressure, but reversed upwards with strong volume support. The $0.22 level became a resistance level, causing the price to fluctuate within the daily range. A rapid increase in volume at the end of the trading session is seen as a key point for price increase.

In the past hour, Dogecoin's trading volume has been about 6.8 million coins per minute, indicating that trading mainly involves large investors. Looking ahead, investors are closely watching whether the $0.22 support level can sustain its price, and whether it can rise to the $0.23-$0.24 range.

Despite ongoing security risks with Qubic, observers are still closely monitoring the continued participation of major investors. Whether buying volume can be sustained after a sudden surge in trading volume is seen as a key factor in determining whether a rapid recovery can be sustained.

A market observer noted: 'If purchasing power continues to grow after a sudden increase in trading volume, it can ensure the sustainability of the recovery. Otherwise, congestion may persist.'