Dogecoin Whales on a Buying Spree: Accumulation Trend Revealed
Dogecoin has experienced a surge in activity, reversing a period of stagnancy. In the past two days, DOGE has seen a 7% increase, countering previous corrections. This rise in activity can be attributed to Dogecoin whales engaging in a massive buying spree, as indicated by on-chain data.
Accumulation Trend Exposed by Crypto Analyst
Crypto analyst Ali Martinez has highlighted the accumulation trend of DOGE whales through a tweet. According to the Santiment chart shared by Martinez on social media, wallets holding between 10 million to 100 million DOGE tokens have added 25 million DOGE in the past 24 hours. This brings their total balance to 15.63 billion DOGE.
Change in Sentiment Among Traders
The chart dynamics suggest a significant shift in sentiment among this group of traders. The collective balance of these wallets has been declining since March 14th but has now started to rise again.
Why Does This Matter?
The actions of crypto whales often have an impact on the market. Increased buying or selling from these large traders can influence the sentiment of other investors, leading to price surges or declines. The chart shared by Martinez demonstrates a correlation between the total balance of DOGE’s whale addresses and its price movements.
For example, when the total whale balance dropped on March 14th, DOGE’s price also experienced a 33% decline from $0.1878 to $0.1629. However, DOGE is now showing signs of recovery.
The long-term success of Dogecoin depends on its ability to transition from a memecoin to a widely used cryptocurrency. The recent announcement by Coinbase, America’s largest crypto exchange, to include Dogecoin in its regulated futures contract offerings is a step towards mainstream adoption.
Predictions for DOGE’s Future
According to Ali Martinez’s earlier prediction, DOGE could reach the $1 mark in April. This forecast is based on the crypto’s performance after similar breakouts in 2017 and 2021.
Whale addresses play a crucial role in the manifestation of this prediction, especially if they continue accumulating DOGE. Traders should keep an eye on the $0.20 resistance level. A breakthrough could lead to further surges, while failure to surpass this level may indicate a weakening rally.
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