Since Wednesday, crypto whales have made headlines by purchasing approximately 1 billion Dogecoin (DOGE), signaling a potential lifeline for the meme coin amid a historically bullish October. After starting Sunday at $0.13, Dogecoin's price has dipped to $0.10. This substantial accumulation could provide the support needed to reverse recent losses, but the question remains: is it enough to shift the course for DOGE?
Recent data from Santiment reveals that the number of coins held by addresses owning between 100 million to 1 billion DOGE has increased from 29.88 billion on October 2 to 30.88 billion. This increase of 1 billion DOGE in just two days signifies a significant buy-in from crypto whales, translating to an estimated $100 million worth of investments at current prices.
Historically, large purchases by whales often attract more market participants. When major players accumulate assets, it typically enhances the coin's appeal, encouraging additional buying and, ultimately, driving prices higher. This trend suggests that whales are capitalizing on what they perceive as a discounted price for Dogecoin.
Interestingly, as whales have increased their holdings, the Coin Holding Time for Dogecoin has also surged. This uptick in accumulation is essential as it indicates that long-term investors are confident in the coin’s future, holding onto their assets rather than selling in a downtrend.
Juan Pellicer, Senior Researcher at IntoTheBlock, notes the significance of this whale activity. He explains, “This uptick in accumulation coincides with growing positive sentiment in the memecoin space. With notable figures like Arthur Hayes sharing bullish outlooks on memecoins, the increasing trust from whales could signal further price gains ahead.”
If this trend of accumulation continues, there’s a strong possibility that Dogecoin’s price could see considerable appreciation in the coming weeks. The combination of whale buying and positive sentiment in the memecoin market creates a conducive environment for a rebound.
In conclusion, while the price of Dogecoin remains uncertain, the actions of crypto whales suggest that they see potential value in DOGE. As they buy the dip, other investors may follow suit, potentially lifting the price back toward previous highs. For now, the crypto community will be watching closely to see if Dogecoin can indeed shake off its recent losses and capitalize on this wave of whale support.
October 2024, Cryptoniteuae