Dogecoin has experienced a rollercoaster ride this week as investors take profits, causing the price to reverse over 50% of its recent gains. However, amidst this profit-taking trend, DOGE whales are bucking the trend by increasing their holdings. Crypto analyst Ali Martinez highlighted this whale accumulation on social media platform X, revealing that some DOGE whales have purchased over 60 million DOGE in the last 24 hours.
The surge in buying activity from both whales and retail traders earlier in the week led to a price peak of $0.1269 for Dogecoin. Although the price has since retreated by 6%, the buying activity persists, with whales continuing to drive the market. According to Santiment data shared by Martinez, DOGE whales now hold a collective 10.5 billion DOGE tokens, the highest amount this year.
Addresses holding between 10 million and 100 million DOGE also joined in on the buying spree, acquiring around 160 million DOGE in just 48 hours. This widespread bullish sentiment among large holders is fueling optimism among DOGE holders, hinting at a potential bullish momentum for the cryptocurrency.
Whale activity often has a significant impact on the price of cryptocurrencies, and the continued accumulation by DOGE whales suggests a positive outlook for Dogecoin. Despite currently trading at $0.1192, down 2% in the past 24 hours, the buying pressure from large holders has yet to be fully reflected in the price. If the accumulation trend continues, DOGE could potentially see a larger uptrend and outperform the market.
With new money flowing in and whales making substantial purchases, the short-term forecast for Dogecoin appears promising. The cryptocurrency is currently hovering around a crucial order block at $0.117, with the possibility of either bouncing back up or breaking below. In the event of an upward bounce, the next resistance level is at $0.1266, a key level that DOGE has struggled to surpass in the past month.
Overall, the recent whale activity and bullish sentiment surrounding Dogecoin indicate a potentially bright future for the meme-inspired cryptocurrency. As the market continues to evolve, all eyes will be on how DOGE responds to the ongoing accumulation by large holders.
