Dogecoin (DOGE) has faced a downturn, marking three consecutive days in the red. The leading memecoin by market capitalization has dropped by over 27% in the past month, following a broader market decline among top cryptocurrencies. However, despite the dip, large-scale investors, commonly referred to as “whales,” have seized the opportunity to accumulate significant amounts of DOGE, signaling strong confidence in its future potential.
Whale accumulation signals strong confidence in DOGE
Recent on-chain data shows that major DOGE holders, particularly those with balances between 10 million and 100 million DOGE, acquired a staggering 750 million DOGE during the price decline last week. This accumulation suggests that institutional investors and high net worth individuals are betting on a potential rebound in the meme token’s price.
Supporting this trend, blockchain analytics platform IntoTheBlock reported a 5.33% rise in DOGE’s inflows over the past week, indicating consistent buying pressure. More strikingly, the 30-day inflows have surged by 323.86%, while the 90-day data reflects a staggering 3,722.46% increase, according to the update. Such significant growth in whale activity suggests that major players are positioning themselves for a potential upward move in the price of DOGE.
Technical analysis hints at a bullish reversal
While Dogecoin remains in a corrective phase, analysts believe that technical patterns could signal a price recovery. Renowned trader Coinvo has identified a corrective ABC wave pattern on the DOGE/USDT daily chart, which he believes indicates an imminent upward movement. “Everything is pointing towards a DOGE move higher,” the analyst stated, emphasizing that the market may be nearing the end of its correction phase.
Adding to the optimism, another analyst has examined historical price cycles to predict potential price peaks. Previous market cycles indicate that Dogecoin experiences significant price surges approximately every 1,442 days.
In its first recorded cycle, Dogecoin skyrocketed by 21,821%, peaking in January 2018. Its second cycle, ending in May 2021, saw an even greater increase of 54,890% from its cycle low. Based on this historical pattern, the analyst suggests that Dogecoin’s current cycle could push its price beyond $10. More ambitious projections in his projection even estimate a potential peak as high as $440, though such forecasts remain speculative.
Read also: Dogecoin price forecast amid temporal display on U.S. DOGE website
State of DOGE
Dogecoin’s recent price dip has not deterred long-term investors, with whale accumulation reinforcing confidence in its future. While short-term volatility remains a challenge, technical indicators and historical patterns suggest a potential breakout. If buying pressure continues and the broader crypto market stabilizes, DOGE could be on the verge of another bullish phase.
With its market cap at over $39 billion, DOGE is changing hands at $0.21 at the time of writing, marking a 2.5% gain in the past 24 hours and a 6.1% rise in the past 7 days.
Read also: Understanding the Pros and Cons of Memecoins as an Investor
Ndianabasi Tom A Petroleum Engineering degree holder, Ndianabasi’s interest since 2018 has been study ing the ever-growing field of blockchain and cryptocurrency, keenly evaluating the innovation, exploration, and expansion of this field locally and globally. The founder of Nitadel a media platform, Ndianabasi has been a Writer at Crypto Asset Buyer (CAB) since 2021. When he is not drilling resources in the blockchain and cryptocurrency field, Ndianabasi is singing, reading, watching crime movies, or playing football.
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