Recent on-chain data has revealed that Dogecoin whales are back in the market and accumulating tokens en masse. Based on the current state of the market, these whales appear to be taking advantage of low prices to buy more DOGE tokens in hopes of an imminent rally.
Dogecoin Whales Are Back In Action
In an X (formerly Twitter) post on April 15, crypto analyst Ali Martinez announced that Dogecoin whales have returned to the scene with significant accumulation activity after initiating a massive sell off previously. These large-scale crypto holders reportedly acquired over 800 million DOGE tokens within a 48-hour period. With Dogecoin trading around $0.16 at the time, the total value of the purchase amounted to roughly $130 million.
The analyst presented a chart which tracks the holdings of wallets containing 1 billion DOGE or more, revealing a sharp increase in accumulation beginning around April 9, with holdings remaining elevated through April 14.
This influx of whale interest aligns closely with an upward movement in Dogecoin’s price, which rose from approximately $0.153 to around $0.165 during the same period. The timing and scale of this accumulation also suggest a shift in sentiment and confidence among these big players, often seen as an indicator of potential upward momentum.
Over the past month, the Dogecoin price has declined to $0.154 after dropping by 11.3%. Considering the meme coin’s significantly low price compared to its previous high earlier this year, it appears that Whales could be taking a buy-dip approach to accumulate as many tokens as possible during the current market downturn.
Notably, the recent 800 million DOGE acquisition isn’t the only large-scale whale purchase this month. On April 11, Martinez reported that whales had also scooped up over 80 million DOGE, a buy valued at approximately $13 million at the time.
This surge in whale activity suggests growing optimism among large traders, possibly reflecting expectations of a price recovery. Supporting this outlook. Martinez revealed that approximately 72.13% of long-term Dogecoin traders are currently holding long positions. This metric reflects a firm conviction in Dogecoin’s potential to rally, especially if broader market conditions begin stabilizing.
DOGE Price Gears Up For Higher Pump
In one of his latest analyses on X, Trader Tardigrade, a well-known crypto analyst, predicted that the Dogecoin price is gearing up to challenge the downtrend and rebound higher. The analyst unveiled that the meme coin is currently forming a prolonged Symmetrical Triangle pattern on its chart, indicating the possibility of a bullish turnaround.
According to Trader Tardigrade, the longer Dogecoin’s consolidation is within this Symmetrical Triangle, the stronger its momentum grows. This supports the possibility that once Dogecoin breaks out of the triangle, it could see a higher pump to new levels.
Featured image from Pexels, chart from Tradingview.com
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