Dogecoin (DOGE) whales look to have used this recent price crash as an opportunity to accumulate the foremost meme coin. This provides a positive development for Dogecoin, and the meme coin has already reacted positively, seeing how its price has recovered in the last 24 hours.
Dogecoin Whales Accumulate More DOGE
Data from the market intelligence platform IntoTheBlock shows that Dogecoin witnessed $1 billion in large transactions these past few days. Large transactions refer to ones that involve $100,000 worth of Dogecoin or more being traded. An increase in the large transactions suggests that whales are either accumulating more Dogecoin or looking to offload their tokens.
Further data from IntoTheBlock suggests that these whales are indeed accumulating more Dogecoin following this recent market decline. The net flows to exchanges metric has been negative over the past seven days, which shows that these whales have been buying the dip rather than moving their holdings to exchanges to offload their tokens.
This presents a bullish outlook for DOGE and again highlights these investors’ conviction in the foremost meme coin. This wave of accumulation by Dogecoin whales is also significant as it could help spark a price recovery for Dogecoin, which had dropped to as low as $0.11 following the recent market decline.
Besides this wave of accumulation, Dogecoin already looked poised to rebound to the upside as the market value to realized value (MVRV) ratio showed that the meme coin was greatly undervalued at its current price levels. Crypto analyst Kriss Pax also recently predicted that Dogecoin should enjoy a massive bounce from here and significantly move to the upside.
The analyst alluded to DOGE’s relative strength index (RSI) which he noted painted a bullish picture for the meme coin. Interestingly, he suggested this was the right time to buy Dogecoin as he didn’t foresee the meme coin going lower than its current price level. Pax also alluded to the growing altcoin dominance, which could usher in the altcoin season when coins like Dogecoin are expected to enjoy a massive rally.
DOGE Will Still Reach As High As $2 In This Market Cycle
Crypto analyst Crypto Kaleo recently provided a bullish narrative for Dogecoin, predicting that the foremost meme coin can rise to $1 and $2 in this bull run. He noted that the foremost meme coin has traded sideways for most of its existence, but when it pumps, it is always parabolic, alluding to how the meme coin had rallies where it enjoyed a 6,000% and 30,000% price gain in the past.
Crypto Kaleo mentioned that these moves occurred 8 to 9 months after the previous halvings. Based on historical trends, it is fitting that DOGE doesn’t enjoy a real breakout until sometime between December this year and February next year.
Crypto Kaleo predicts that Dogecoin could drop to as low as $0.08, retracing its price levels before the massive rally it enjoyed this year. He claims that such a move would be similar to the -30% drawdown and retrace that occurred in August 2020, several months before Dogecoin wet mainstream and began to pump massively.
Featured image created with Dall.E, chart from Tradingview.com
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