Dogecoin (DOGE) whales have been actively increasing their holdings of the popular meme cryptocurrency in recent days, accumulating over 1 billion DOGE, equivalent to $157 million, within a week.
This data, sourced from Santiment on June 4, focuses on Dogecoin addresses holding between 100 million and 1 billion DOGE. These whales currently possess 31.15 billion DOGE at a price of $0.157 per coin, compared to 30.10 billion DOGE on May 27, indicating a bullish accumulation of 1.05 billion coins.
Ali Martinez, a prominent cryptocurrency trader and on-chain analyst, also observed similar patterns of accumulation.
Martinez previously reported a 700 million DOGE accumulation from May 28 to May 31, valued at $110 million, followed by an additional 200 million DOGE accumulated between May 30 and June 4.
Dogecoin (DOGE) forecast in the context of whale accumulation
When DOGE was trading at about $0.085 in February, its price had almost doubled. Dogecoin had a trading and transaction volume of roughly $864 million and $64 million, respectively, at that time, which was comparable to what it has now.
These two indicators fell gradually, which resulted in an accumulation period before the astounding nearly 100% spike. Consequently, if this pattern holds true, the top meme coin may see another round of comparable price activity above $0.22—achieved in March.
Ali Martinez also talked about the 47% decline in price from these highs to Dogecoin's May pricing. The analyst published a thread on May 1st, demonstrating how DOGE broke out of the descending triangle that had developed during this time.
Martinez suggests a pattern reminiscent of previous bullish cycles in 2017 and 2021 for Dogecoin. Drops of 40% and 56% preceded significant price surges of 982% and 12,197% in each respective bull market.
This pattern could potentially drive DOGE to $1 initially, and even further to $6. However, achieving these price levels would necessitate market capitalizations of $144 billion and $864 billion, respectively, which are quite substantial.
In summary, the recent accumulation of 1 billion Dogecoin by whales indicates bullish sentiment. Technical analysis forecasts DOGE surpassing $1 per coin, but achieving this milestone may face challenges given economic fundamentals.
June 2024, Cryptoniteuae