Since Wednesday, significant investors in cryptocurrency, often referred to as crypto whales, have acquired approximately 1 billion Dogecoin (DOGE). This influx of investment may help the meme coin recover from a lackluster beginning to what is typically a bullish October. While Dogecoin was priced at $0.13 on Sunday, it has since decreased to $0.10.
It seems that this notable accumulation could provide the necessary backing for DOGE to overcome its recent declines. However, will this uptick be sufficient to alter the trajectory of the meme coin?
Whales Acquiring the Dogecoin Dip, Investors Hold On
According to data from Santiment, the total number of DOGE owned by wallets holding between 100 million and 1 billion coins was 29.88 billion on October 2. Currently, that number has risen to 30.88 billion, indicating that crypto whales have picked up 1 billion coins over the past two days.
At the current valuation, these assets amount to roughly $100 million. Generally, when whales purchase large quantities of a cryptocurrency, it tends to attract more investors.
This can lead to increased buying pressure, ultimately pushing prices upwards. In the case of DOGE, it appears that these whales are capitalizing on the recent price drop.
Should this trend persist, Dogecoin’s value could see notable growth in the upcoming weeks. Meanwhile, the average Coin Holding Time for the cryptocurrency has surged alongside the increase in whale holdings.
Interestingly, Juan Pellicer, a Senior Researcher at IntoTheBlock, also posits that this trend could play a crucial role in a potential price rebound for DOGE.
“This increase in accumulation aligns with a rise in positive sentiment within the memecoin sector. Notably, figures like Arthur Hayes have expressed a bullish perspective on memecoins. Additionally, the consistent increase in whale holdings reflects a growing confidence in Dogecoin’s prospects, which may signal further price appreciation ahead,” Pellicer stated to BeInCrypto.
Read more: How To Buy Dogecoin (DOGE) and Everything You Need To Know
Coin Holding Time refers to the length of time a cryptocurrency is possessed without being sold or moved. An uptick in this metric often denotes reduced selling pressure; in Dogecoin’s case, the holding interval has surged by 536% over the past week, indicating that investors are HODLing and patiently waiting for potential future gains.
DOGE Price Forecast: Breakout On the Horizon
On the daily price chart, Dogecoin is attempting to break free from a falling wedge pattern. This technical formation is created by two descending trendlines and is recognized as a bullish reversal, often appearing at the end of a significant downward trend, when buyers commence to capitalize on sellers’ fatigue.
With DOGE trading at $0.10, this indicates that the coin may not witness a significant downturn in the near future. Furthermore, the Relative Strength Index (RSI) indicates momentum is building for a breakout above resistance levels.
Read more: 11 Cryptos To Add To Your Portfolio Before Altcoin Season
Should this analysis be confirmed, the price of Dogecoin could exceed the $0.11 resistance ceiling and potentially rise to $0.17 in the next few weeks. Conversely, if it encounters resistance at $0.11, this prediction might become invalid, leading Dogecoin to drop to $0.092.
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