Large Dogecoin holders, also known as whales, purchased over 90 million DOGE within two days. Crypto analyst Ali Martinez revealed that these investors believe the meme coin has significant growth potential. The total acquisition, valued at around $28 million, occurred during a market downturn, presenting a prime buying opportunity.
Price Response and Trading Volume Trends
Dogecoin’s price showed a slight positive reaction to the whale activity. Bulls are striving to establish a new support level above $0.30. However, this price uptick coincides with a decline in daily trading volume.
Source: CoinMarketCap
CoinGecko data reveals Dogecoin’s trading volume dropped by 9% over the past 24 hours, despite exceeding $2.4 billion. In November, Dogecoin reached $0.48 during a broader crypto market rally. Bitcoin’s surge to over $100,000 fueled this rise.
Related article: Dogecoin Shows Resilience Despite Slight 0.65% Decline: A Mixed Performance with Subtle Bullish Signs in the Last 24 Hours
However, after Bitcoin peaked at $108,000, the market corrected. Dogecoin’s price fell below critical support levels of $0.40 and $0.30. This downturn encouraged whales to buy the dip, positioning themselves for potential gains.
Analysts Predict Bullish Momentum
Trader Tardigrade, a pseudonymous crypto analyst, suggests DOGE may be bottoming out. He highlights bulls’ efforts to maintain support above $0.30 after a breakout and retest of this level. Tardigrade also notes a spinning top candlestick pattern and a rising weekly RSI as indicators of a potential upward trend.
Related article: Dogecoin Price Drop Fuels Long Position Liquidations
Similarly, Ali Martinez sees a possible buy signal on the four-hour chart. He anticipates a price bounce, pointing to the whales’ activity as a major catalyst. Their strategic acquisitions during the dip indicate confidence in Dogecoin’s future.
Interestingly, this wave of DOGE purchases coincides with other meme coins, like MOODENG, experiencing price gains. As whales continue accumulating DOGE, the market watches closely for further price action. The efforts to solidify support at $0.30 could mark a turning point for the meme coin.
