Dogecoin’s price has surged, reaching a three-year high as retail wallets increase holdings and major whale investors re-enter the market. This heightened activity has come shortly after Donald Trump’s recent U.S. presidential victory, which appears to have spurred interest in cryptocurrency among investors.
Retail Wallets Boost Activity, While Whales Return
According to Santiment, a market analysis platform, Dogecoin’s smaller wallets have shown remarkable growth in the past month, with nearly 74,885 new wallets holding less than 100,000 DOGE. However, large-scale investors—often classified as “sharks” and “whales”—have seen a decrease, with 350 of these high-value accounts exiting over the same period.
Despite this decline, a resurgence of 108 whale wallets has been observed, pushing Dogecoin above $0.40 and marking its highest point since 2020.
Santiment suggests that to maintain this momentum, Dogecoin will need ongoing support from both retail investors and large stakeholders. As a result, market watchers are now focused on whether more high-value investors will re-enter to fuel the rally further.
Significant Dogecoin Outflows Signal Increased Accumulation
Data from IntoTheBlock points to a sharp increase in Dogecoin moving off exchanges, an indicator often tied to accumulation. Over the last 24 hours, exchange outflows have jumped by 157.64%, with DOGE flowing into private wallets, signaling a growing interest from long-term holders.
Related article: Dogecoin Reaches New Heights with 20% Surge in Open Interest
Extending to a weekly view, the outflows have risen 434.51%, while the past 30 days have seen a dramatic 1,820.58% increase. This pattern of sustained outflows suggests stronger backing for Dogecoin’s bullish momentum, driven largely by long-term investors.
Analysts Anticipate Potential for Parabolic Price Growth
Analysts are closely observing Dogecoin’s recent price trend, noting signs of a possible parabolic run. Technical analyst Ali Martinez has identified Dogecoin’s breakout from a longstanding resistance line—a pattern that has historically preceded massive price spikes.
Related article: Dogecoin Leads Crypto Market Rally with Major Gains; Potential Correction Ahead
In the 2017-2018 bullish phase, a similar breakout led to a staggering 8,933% rise in price, with Fibonacci retracement levels guiding the path. Based on historical analysis, Martinez projects possible future price targets within the 1.618 to 2.272 Fibonacci levels, which could place Dogecoin’s price between $3.95 and $23.25.
This estimate aligns with previous patterns, suggesting that if the current momentum holds, Dogecoin may be on the brink of another significant rally.
