Dogecoin ($DOGE), a popular memecoin, has seen a significant accumulation by cryptocurrency whales in the past 48 hours. The whales has purchased approximately over 90 million DOGE. According to the data shared by a crypto influencer Ali Charts (ali_charts) on X, large holders specifically wallets holding between 10 million and 100 million DOGE, have been steadily increasing their position.
Whales bought over 90 million #Dogecoin $DOGE in the past 48 hours! pic.twitter.com/lGsMtz0iPp
— Ali (@ali_charts) December 27, 2024
Despite the surge in the accumulation, the token price has not shown a great upward movement. The token currently is priced at $0.3191 with a surge of 0.9%, down from its earlier highs this month. The chart above, highlights a divergence between whale activity and price action, suggesting that whales are capitalizing on the price dip to secure long-term holdings.
Historically, such accumulation phases by whales often precede significant price rallies. Their strategic buying during price declines signals confidence in the cryptocurrency’s future performance, indicating potential upside in the near term.
However, the recent whale accumulation may also be a sign that Bitcoin’s dominance is nearing a potential breakout or breakdown. If BTC’s dominance were to decrease, it could lead to surge in altcoin prices, including DOGE. This move however seems like a strategic move for the investors to prepare themselves for the altcoin season.
Potential Impact on Dogecoin’s Price
Analyst predicts that if there is more whale activity, there would be less available supply in the market which will create an upward pressure on the token’s price.
Moreover, the accumulation comes at a point when the market is trying to stabilize with the recent volatility, adding to the likelihood of a rebound. Short-term Dogecoin price predictions suggest that the token could retest the $0.35-$0.38 resistance levels if buying momentum stays. If the token surpasses this resistance level, the price could hit the $0.40 mark.
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