$100 Million Whale Investment Could Save Dogecoin (DOGE) from Recent Decline
In a surprising turn of events, crypto whales have recently purchased a staggering 1 billion Dogecoin (DOGE), indicating that they may be able to rescue the meme coin from a rocky start to a typically bullish October. DOGE’s price had dropped from $0.13 on Sunday to $0.10 today, but the significant buy-in from these influential investors could help reverse these losses.
According to data from Santiment, addresses holding between 100 million and 1 billion DOGE owned a total of 29.88 billion coins on October 2. However, that figure has now increased to 30.88 billion, meaning that whales have acquired a billion DOGE in just two days. At the current price, these coins are worth around $100 million. This large-scale accumulation typically makes the cryptocurrency more attractive to other investors, leading to increased interest and higher prices.
If this trend persists, Dogecoin’s price may experience a significant surge in the coming weeks. Furthermore, the crypto whales’ recent accumulation aligns with the surge in the coin’s long-term holding time. As indicated by IntoTheBlock, Dogecoin’s holding time has increased by an astonishing 536% in the past week, indicating that investors are holding onto their DOGE and patiently waiting for potential gains.
Notably, Juan Pellicer, a senior researcher at IntoTheBlock, believes that this whale move could play a crucial role in DOGE’s price rebound. Pellicer states, “The fact that whales are steadily increasing their holdings suggests growing trust in Dogecoin’s potential, which could be a sign of further price gains ahead.”
Analyzing the daily chart, it can be observed that Dogecoin’s price is attempting to break out of a falling wedge pattern, which consists of two descending trendlines. This pattern is considered bullish as it typically occurs after a cryptocurrency has reached its final downward move, and buyers capitalize on sellers’ exhaustion. With DOGE currently priced at $0.10, this breakout suggests that the coin may not experience a significant downturn in the short term. Additionally, the Relative Strength Index (RSI) indicates positive momentum and is gearing up for a break above resistance.
If confirmed, Dogecoin’s price has the potential to surpass the $0.11 overhead resistance and potentially reach $0.17 within a few weeks. However, if the coin faces rejection at $0.11, this forecast may be invalidated, and Dogecoin could decline to $0.092.
Overall, with the recent influx of whale investments and the positive sentiment surrounding meme coins, Dogecoin may be on the path to recovery in the coming weeks, potentially reversing the effects of a tough October.