Dogecoin Whales Bought Over 2 Billion DOGE Last Week: Price Rally in the Making?

TL;DR

• Large investors recently bought billions of DOGE tokens, signaling potential bullish momentum.
• Analysts foresee a possible rally, with some setting a $1 target for the meme coin.

DOGE Whales on the Move

Dogecoin (DOGE) was one of the many meme coins whose prices increased substantially at the end of September. Since then, though, it has lost momentum and currently trades at around $0.10 (per Coingecko’s data).

DOGE Price, Source: CoinGecko

One factor signaling that a renewed surge could be on the horizon is the increased whale activity. Crypto intelligence platform IntoTheBlock revealed that large investors purchased 2.07 billion DOGE tokens (worth over $220 million at current rates) last week. The last time the whales’ accumulation reached that level was in January this year. 

If investors buy DOGE and hold onto their stash without selling, the circulating supply in the market will be reduced. Basic economic principles suggest that prices rise if combined with a stable or increasing demand.

The actions of whales are closely monitored by smaller players. Such accumulations can signal confidence in the asset, triggering a wave of buy-ins from retail trader (hence an additional flow of capital into the ecosystem).

Another element suggesting that DOGE’s price might be poised for a move to the upside is the increase of Large Transactions. The metric, gauging transactions greater than $100,000, is up 1% on a daily scale, flashing the bullish sign. 

DOGE Predictions

Several analysts on crypto X believe the leading meme coin could be indeed gearing up for a rally in the following months. Ali Martinez, for instance, claimed the price chart had formed a similar pattern to the one witnessed years ago. He believes this could be a precursor of a 200% surge, 60% retracement, and then a bull run.

Mikybull Crypto was optimistic, too, setting $1 as a “minimum target” for this cycle. “It’s currently in preparation for the next explosive wave of rallies,” they added.

Those willing to check additional bullish Dogecoin price predictions can take a look at our dedicated article here.