Dogecoin price may soon witness another price increase following the recent accumulation trend by crypto whales. On-chain data shows that these whales bought billions of DOGE tokens last week, which could cause a price spike for the leading meme coin.
Dogecoin price could rise as whales buy over 2 billion DOGE
Dogecoin price could skyrocket as whales bought 2.07 billion DOGE tokens last week. That was the seven-day net flow for large holders, according to data from market intelligence platform IntoTheBlock. This net flow refers to the difference between the amount these Dogecoin whales withdraw from the exchange and the amount they send to the exchange.
Interestingly, Bitcoinist reports that these Dogecoin whales purchased over 1 billion DOGE tokens ($108 million) within 24 hours, further highlighting the pace at which they have amassed the best meme coins. did. This accumulation trend among these whales is definitely bullish for Dogecoin price as it could cause a rise in the meme coin.
Crypto analyst Ali Martinez also suggested that a price rise is imminent given how these whales want to gain exposure to the top meme coins. He said the number of large trades on the network continues to rise, suggesting that institutional investors and DOGE whales are poised for a potential upward move.
These investors believe that the next Dogecoin price recovery will start a bullish move for memecoins, given that DOGE has so far lagged the broader cryptocurrency market, including other memecoins. You would expect that. DOGE boasts over 21% year-to-date (YTD) appreciation, which does not compare to the price increases recorded by other leading meme coins such as Pepe (PEPE) and Dogwifhat (WIF).
Other factors that may affect price recovery
External factors such as macro aspects can influence Dogecoin’s price recovery. Bitcoinist reported that meme coin prices have recently collapsed due to market uncertainty caused by recent US employment figures, geopolitical tensions, and the upcoming US presidential election. Therefore, these factors could hinder Dogecoin’s price appreciation until investors are confident about how these events will unfold.
On the macro front, US Consumer Price Index (CPI) inflation data due for release on October 10 will guide these investors on whether to allocate more capital to riskier assets like Dogecoin. . This data could determine whether the US Federal Reserve (Fed) cuts interest rates by 50 basis points (bp) at the November FOMC meeting.
A 50bps rate cut gives Dogecoin a bullish outlook. This will increase investors’ risk appetite and increase their confidence in investing in crypto assets like DOGE.
At the time of writing, Dogecoin price was trading around $0.1092, up almost 2% in the past 24 hours, according to data from CoinMarketCap.
DOGE price does not recover |Source: DOGEUSDT on Tradingview.com
Featured image created by Dall.E, Charts from Tradingview.com
