Dogecoin Price Rises 7% Following Whale Accumulation of 590 Million DOGE

Dogecoin Price Surge Attributed to Whale Accumulation

Dogecoin (DOGE) witnessed a notable 7% price jump within the past 24 hours, coinciding with significant whale activity in the cryptocurrency market.

Whale Accumulation Fuels Market Sentiment

According to data from on-chain analytics firm Santiment, large holders (whales) acquired an additional 590 million DOGE during this period. This accumulation has generated increased interest, reflected in higher trading volumes and derivative activity.

Whale Wallet Growth

Santiment analysts indicate that whale addresses holding between 10 million and 1 billion DOGE amassed 590 million DOGE in a single day. This increase suggests that large investors are optimistic about Dogecoin's future.

Dogecoin's Price and Market Performance

On January 21, Dogecoin rose 7% to $0.3673, peaking at $0.40 before retracing. It maintained a higher level than its opening price of $0.3422, trading primarily between $0.36 and $0.38.

Market capitalization also experienced a 7.36% growth to $54.26 billion. Trading volume increased by 13.98% to $8.46 billion, indicating heightened participation from both retail and institutional investors.

Whale Purchases and Mainstream Participation

The price rally is attributed to whale purchases and mainstream market participation, as evidenced by the high trading volume at its onset.

The launch of the United States Department of Government Efficiency (D.O.G.E), spearheaded by Elon Musk, also positively influenced Dogecoin. The department's website featuring the Dogecoin logo attracted attention and contributed to a 15% price increase within minutes.

Growing Derivative Interest

Open interest (OI) in Dogecoin's derivatives market reached $2 billion, indicating a 6.26% surge over the last 24 hours. This parameter represents the value of active perpetual contracts, signaling increased trading interest.

Binance Dominates Derivative Trading

Binance, with $910 million, leads all exchanges in Dogecoin derivative trading, followed by Bybit ($743 million) and OKX ($334.5 million). These platforms handle a significant portion of DOGE's derivative activity.

Dogecoin holds a notable share of 2.74% and 2.87% in the crypto market's total OI and perpetual contracts, respectively, highlighting its prominence among altcoins.