Dogecoin Whales Make a Huge Move: Is DOGE’s Price Poised for a Rally?

TL;DR

Major investors have recently acquired 750 million DOGE during the market downturn, potentially signaling an impending price surge. While some analysts predict a further price drop to $0.17, historical data suggests the possibility of a significant bull run for Dogecoin in the future.

Indications of a Market Reversal

The cryptocurrency market has experienced significant losses in recent days, primarily due to the sharp decline on February 3rd. While Bitcoin has dropped 6%, altcoins have suffered more substantial losses.

Dogecoin (DOGE), the popular meme coin, has been among the most affected, with its price falling below $0.30 and recording a 21% weekly decline (as per CoinGecko data).

Whale Accumulation

Despite the downtrend, large investors known as "whales" have taken advantage of the dip and increased their holdings in DOGE. Analyst Ali Martinez revealed that they purchased 750 million tokens (roughly $200 million) during the correction. "This indicates strong confidence in the market," Martinez stated.

Whale accumulation is often interpreted as a bullish omen, as it can influence other traders to follow suit and trigger an uptrend. The reduced supply of DOGE available in the open market could also contribute to an increase in valuation, assuming demand remains stable or grows.

Contrasting Whale Behavior

The whales' recent actions differ from their moves at the beginning of the month when they sold 270 million DOGE within 24 hours, which was followed by a price decline.

DOGE Predictions

The meme coin's market movements have sparked speculation about its future trajectory. Analyst AMCrypto suggested that DOGE may experience a further dip to $0.17 before embarking on a rally towards a new all-time high.

Trader Tardigrade and KALEO have also provided their forecasts. Tardigrade cited historical performance to predict a significant bull run, noting that:

"In the 2016 pullback, DOGE retraced 59.76%, followed by a +9,221% bull run. In the 2020 pullback, DOGE retraced 56.2%, followed by a +30,693% bull run. When in doubt, check the macro chart."

KALEO expressed bullish sentiment, stating that $0.25 is "a solid entry and practically free compared to where we'll see it a few months from now."