Dogecoin has seen a steady increase in activity over the past two days to reverse the period of stagnation recorded at the beginning of the week. At the time of writing, DOGE is up 7% in the last 24 hours, reversing some of the corrections it underwent last week. It turns out that some Dogecoin whales are on a massive buying spree, as indicated by network data.
Popular crypto analyst Ali Martinez highlighted this accumulation trend by tweeting that DOGE whales have purchased over 25 million DOGE worth around $3.75 million in the last three days.
Crypto Analyst Reveals Dogecoin Whale Accumulation
According to the Santiment chart shared by Ali Martinez on social media, wallets with between 10 million and 100 million DOGE tokens increased their total balance to 15.63 billion DOGE after adding 25 million DOGE in the last 24 hours.
Interestingly, the dynamics of the chart indicate that this is a major shift in sentiment for this group of traders, as their collective balance has been in freefall since March 14th.
#Dogecoin whales bought 25 million $DOGE in the last 72 hours, worth around $3.75 million! pic.twitter.com/y1RnRffWhv
-Ali (@ali_charts) March 21, 2024
Why is it important?
Crypto Whales typically move the market. Increased purchases or sell of a few big traders could change the sentiment of other investors and could further cause a price rise or fall. Notably, the chart shared by Martinez shows that the total balance of DOGE whale addresses largely corresponded to the price increase.
For example, the March 14 drop in total whale balances corresponded to a 33% drop in the price of DOGE, from $0.1878 on March 14 to March 20. However, DOGE is now showing signs of recovery and is currently trading at $0.1629.
While Dogecoin whales and FOMO buyers can temporarily lift DOGE, its long-term success really depends on it being able to transform from a memecoin into a widely used cryptocurrency. Dogecoin recently scored a point in its attempt to achieve widespread adoption. Coinbase, America’s largest cryptocurrency exchange, has revealed plans to introduce Dogecoin alongside Litecoin and Bitcoin Cash into its regulated futures contract offerings.
According to a previous forecast by Ali Martinez, DOGE could reach the $1 mark in April. His prediction was based on the crypto’s performance following similar breakouts in 2017 and 2021.
A big part of this prediction manifesting is bullish sentiment from whale addresses, especially if they continue in an accumulation pattern. A key price level to watch is $0.20. If DOGE breaks this resistance level, it could continue rising on buying momentum. But if it fails to break $0.20 and starts falling again, it could indicate that the rally is losing momentum.
DOGE price trending at $0.156 | Source: DOGEUSDT on Tradingview.com
Featured image from CryptoRank, chart from Tradingview.com
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