In the ever-changing world of digital currency trading, Dogecoin has garnered attention recently due to a noticeable increase in its activity. Following a period of quiet trading at the start of the week, Dogecoin’s stagnant performance has been turned on its head. In the past 24 hours alone, the cryptocurrency gained an impressive 7%, helping in part to offset the corrections experienced earlier in the week.
This unexpected spurt of growth appears to be fueled by a surge of substantial purchases made by several Dogecoin whales. As revealed by the on-chain data, these influential players have been actively accumulating Dogecoin in the last few days.
Renowned crypto analyst, Ali Martinez, spurred the conversation around this accumulative behavior with a revealing tweet. According to Martinez, Dogecoin whales collectively bought over 25 million DOGE, equivalent to around $3.75 million, in just a three-day span.
Martinez further elaborated by sharing a chart from Santiment, which showed an impressive surge in the collective balance of wallets holding between 10 million and 100 million DOGE. Over the last day, these wallets had increased their combined balance to 15.63 billion DOGE, an addition of 25 million DOGE.
This data suggests a significant shift in trading sentiment. Until now, this group of traders had been liquidating their holdings since March 14, causing their collective balance to plunge. However, this trend seems to have sharply reversed in the recent days.
Such accumulative behaviors from crypto whales are of critical importance as their buying and selling patterns have the power to sway market sentiment. Even a single large-scale investor can influence smaller traders, spurring a ripple effect that can either cause a surge in pricing or lead to a decline. In fact, the chart that Martinez shared reveals a striking correlation between the balance of Dogecoin’s whale addresses and its price increase.
For instance, the decline in the total balance of the whales on March 14, corresponded with a steep 33% fall in Dogecoin’s price, plummeting from $0.1878 to $0.1629 between the 14th and 20th of March. Despite this downturn, Dogecoin is now trading at $.1629, hinting at early signs of recovery.
That said, the long-term success of Dogecoin hinges on its transformation from a popular meme-coin into a widely-accepted digital currency. A promising development in this regard was the recent announcement by Coinbase, America’s largest crypto exchange, to include Dogecoin, along with Litecoin and Bitcoin Cash, in its regulated futures contract offerings.
Further stimulating speculation around Dogecoin’s potential, Ali Martinez made a bold prediction that Dogecoin could touch the $1 mark by April. This prediction is based on the cryptocurrency’s performance following similar breakouts in 2017 and 2021.
However, key to realizing this prediction is the continued bullish sentiment of the whale addresses. If they maintain their accumulating pattern, it could push Dogecoin closer to the pivotal price level of $0.20. Breaking this resistance could fuel further buying momentum. Failure to do so may signify the rally losing its momentum.
As current trading trends show, Dogecoin is trading at $.156 on Tradingview.com. Given the recent developments and the buzz surrounding the digital currency, traders and investors are closely watching these moves for signs of the cryptocurrency’s long-term viability and performance.
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