Dogecoin whales have purchased over 1 billion DOGE, signaling a possible shift in the market. After the acquisition, the price of the cryptocurrency increased by 4%, but there is still a possibility of a market correction.
Recent data reveals that Dogecoin whales have accumulated more than 1 billion DOGE within 24 hours, indicating that the trajectory of the crypto market could change. The approximately $108 million acquisition comes at a time when the entire crypto market is under pressure due to geopolitical risks. The major purchase is the largest in recent months.
According to Tweet According to prominent cryptocurrency analyst Ali Martinez, the Dogecoin whale has made remarkable moves in the market, accumulating more than 1 billion DOGE. The transaction coincided with a 4% price increase in the cryptocurrency, indicating that large investors took advantage of the existing situation.
#Dogecoin Purchase over 1 billion whales $Doge That totaled about $108.7 million in the past 24 hours. pic.twitter.com/2aSevCd7Lm
— Ali (@ali_charts) October 4, 2024
Analysts argue that these acquisitions may have come at the right time during a market downturn and indicate interest in Dogecoin’s future. However, the market volatility affecting most digital currencies does not deter large traders from investing in DOGE.
Dogecoin price recovery and market sentiment
Following these whale purchases, Dogecoin price rose from $0.08937 to over $0.10, proving once again that whale actions influence the market. As of this writing, Dogecoin price is $0.1092, up 6.73% daily. The cryptocurrency’s market capitalization is currently over $15.97 billion, making it the eighth largest cryptocurrency in terms of market capitalization.
Although Dogecoin’s near-term outlook is promising, experts point out some serious risks. On-chain metrics such as daily active addresses indicate that Dogecoin’s price is likely to correct. This divergence means that even after the recent recovery, a 12% decline is still possible in the coming days.
The recent spike in Dogecoin’s price has divided opinion in the crypto industry and sparked a new debate about Dogecoin’s future. Mark Cuban, a prominent entrepreneur and cryptocurrency advocate, has expressed caution about meme coins in general.
Cuban pointed out that Dogecoin is an exception, saying it has a great community and is fun. However, he acknowledged that meme coins have an element of risk and many of these coins may not be successful.
Technical analysis reveals bullish pattern on Dogecoin price chart
With the recent adoption of Dogecoin, the network of assets has reached over 7.4 million non-zero addresses. According to Santiment, Memecoin’s active address count is at its highest in six months, with more than 84,000 users.
Recently, popular cryptocurrency analyst World Of Charts posted on X about a bullish pattern known as a “descending wedge” on DOGE’s price chart. This pattern, which has been evident since early March, indicated that the meme coin has been volatile for quite some time.
World of Charts predicts that this breakout could spark a big rally, with the cryptocurrency potentially rising up to 100% in the coming days and weeks.
