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- Dogecoin whales have purchased over 1 billion DOGE, suggesting potential market changes.
- The cryptocurrency’s price rose by 4% after the acquisition, but a market correction is still possible.
Recent data reveals that Dogecoin whales have accumulated over 1 billion DOGE within 24 hours, signaling a potential shift in the cryptocurrency’s market trajectory. This acquisition of around $108 million was made at a time when the overall cryptocurrency market was under pressure due to geopolitical risks. The large-scale purchases are among the biggest in the past few months.
According to a tweet from Ali Martinez, a prominent crypto analyst, Dogecoin whales have made notable market moves, acquiring over 1 billion DOGE. This transaction occurred concurrently with a 4% price hike in the cryptocurrency, pointing to large investors taking advantage of existing conditions.
#Dogecoin whales bought over 1 billion $DOGE in the last 24 hours, totaling roughly $108.7 million! pic.twitter.com/2aSevCd7Lm
— Ali (@ali_charts) October 4, 2024
Analysts have argued that these acquisitions may have been made at the right time when the market was low, indicating interest in Dogecoin’s future. However, the market volatility that has affected most digital currencies has not deterred high-volume traders from investing in DOGE.
Dogecoin’s Price Recovery and Market Sentiment
Subsequent to these whale purchases, the price of Dogecoin rose from $0.08937 to over $0.10, again proving that whales’ actions affect the market. At the time of writing this article, the price of Dogecoin is $0.1092, with a 6.73% daily rise. The cryptocurrency’s market capitalization has now crossed $15.97 billion to become the eighth-largest cryptocurrency in terms of market capitalization.
Although the short-term perspective of Dogecoin is promising, the experts have pointed out some severe risks. On-chain metrics such as daily active addresses shows that the price of Dogecoin might be due for a correction. This divergence means that a 12% decline could still be possible even after the recent recovery in the next few days.
The recent spike in Dogecoin’s price has led to renewed discussions about the currency’s future, with opinions in the crypto industry being divided. Mark Cuban, a well-known entrepreneur and advocate of cryptocurrencies, has expressed caution regarding meme coins in general.
Cuban has pointed out that Dogecoin is an exception, stating that it has a great community and is entertaining. However, he also admitted that there is an element of danger with meme coins, and many of these coins might not be successful.
Technical Analysis Reveals Bullish Pattern in Dogecoin’s Price Chart
The recent adoption of Dogecoin has seen the asset’s network reach more than 7.4 million non-zero addresses. The memecoin saw its highest number of active addresses in half a year, reaching more than 84,000 users as per Santiment.
Recently, World Of Charts, a popular cryptocurrency analyst, posted on X about a bull pattern known as a ‘falling wedge’ on DOGE’s price chart. This pattern which has been evident since the beginning of March, gave an indication that the memecoin was ranging for quite some time.
World Of Charts has predicted that this breakout could spark a big upswing, and the cryptocurrency may surge by as much as 100% in the coming days or weeks.
