According to analyst Ali Martínez, Dogecoin whales bought 1.4 billion DOGE in the last two weeks, worth around $280 million.
Dogecoin, the OG memecoin in the cryptocurrency market, needs little introduction. Its market capitalization of more than $26 billion is indicative of its widespread popularity. Despite its fun beginnings, DOGE has evolved beyond its joyful origins and emerged as a top investment option, even becoming Tesla boss Elon Musk’s favorite currency.
DOGE has the distinction of being the first widely recognized memecoin. This pioneering position allowed it to establish a strong brand identity and cultivate a loyal community of followers. Additionally, celebrity endorsements, particularly from Musk, have generated significant media attention and influenced DOGE price action.
Last week was particularly good for DOGE, as the meme coin saw an increase in trading volume during the week that allowed it to successfully surpass the price of $0.22 for the first time since November 2021.
Such spike made the DOGE price will rise up to 33% during the week, surpassing Bitcoin and other large market cap cryptocurrencies. Interestingly, the price increase was due to increased whale activity, as indicated by on-chain data.
The increase in activity led to a greater accumulation trend by this group of traders, as noted by crypto analyst Ali Martínez.
Dogecoin Whales Filling Their Bags
According to the Santiment chart shared by Ali Martínez on social media, whale wallets containing between 10 and 100 million DOGE tokens have steadily increased their holdings since March 15. This accumulation trend led whales to increase their total holdings by 1.40 billion DOGE for a total of 16.7 billion DOGE at the time the metric was shared.
This accumulation, valued at around $280 million, is the highest recorded in a two-week period since Dogecoin rose to popularity in the 2021 bull market.
What’s Next for DOGE?
Both retail and institutional investors are noticing that Dogecoin (DOGE), the fun cryptocurrency born from internet fame, is experiencing a surprising surge. Prices rose almost 10% in a single day in the last week of March 2024, which is an increase of 37% in the last seven days, according to CoinGecko. This unexpected demonstration has the “Doge army” howling with excitement, but experts warn that the future of this meme-inspired currency might not be all sunshine and rainbows.
DOGE has since retraced 7% since its foray into the $0.22 price level, although it is still up 18.9% over the past seven days. According to CoinMarketCap, DOGE is currently trading at $0.2064 with a market capitalization of $29.6 billion.
A continued accumulation by whales could lead to Dogecoin resuming price growth in the new week. With new money coming in and whales making big purchases, the short-term outlook for Dogecoin looks positive.
As NewsBTC reported, several factors point to DOGE reaching the $1 mark before the end of the current bull market phase. However, the meme coin is now facing major resistance at $0.22. A successful breakout of this price resistance could give Dogecoin a clear path towards $0.35.
According to data from IntoTheBlock, around 602,000 addresses purchased DOGE at an average price of $0.35 and are still waiting to break even. This remains a key price level to watch as a break-even point could spark a potential sell-off in some of these directions.
By Leonardo Perez
