While widespread liquidations would be expected from the recent DOGE price crash, Dogecoin whales have embraced the downturn as a prime opportunity. Viewing the dip as a chance for a low market entry, these whales now purchase Dogecoin in large volumes, with the latest transactions recording a 270 million buy.
Dogecoin Whales Scoop Up 270 Million DOGE
The recent decline in the Dogecoin price has prompted large-scale investors, typically called “whales,” to accumulate more tokens. Prominent crypto analyst Ali Martinez disclosed in an X (formerly Twitter) post on Tuesday that Dogecoin whales have bought a whopping 270 million DOGE tokens in the last five days.
This massive 270 million DOGE buy is part of a broader accumulation trend noticed across the meme coin’s network. Since November, Martinez has recorded whales buying hundreds of millions of DOGE during the downtrend.
On December 21, the analyst revealed that Dogecoin whales had purchased 250 million DOGE during the recent market dip. This bold move was made as investors saw DOGE’s decline as a favorable entry point, a behavior often associated with more prominent players who buy tokens at a lower price in hopes of long-term gains.
The recent DOGE buying spree by whales could indicate strong confidence in the Coin’s future. Martinez has also expressed optimism in the meme coin’s price prospects, highlighting in a previous X post that DOGE could experience another parabolic rally to a $20 ATH.
While bullish sentiment for DOGE’s price remains strong, Dogecoin whales are taking advantage of the current market conditions and declining prices to increase their holdings and prepare for a potential rally. With the Dogecoin price currently trading at $0.33, the recent 270 million DOGE buy is approximately valued at $89 million.
Pattern Repetition Could See DOGE Price Reaching $5
Crypto analyst Trader Tardigrade has presented a chart illustrating a recurring historical trend pattern in the Dogecoin price movement. The analyst suggests that a repetition of this historical trend could trigger a parabolic rally for Dogecoin.
The red curved lines in the chart highlight DOGE’s rounded consolidation phases in different cycles, while the green ascending lines underscore a steady bullish trend. Each consolidation period in the chart has led to a significant rally, where Dogecoin’s price explodes at the end of the trend.
Based on the recurrent historical pattern, DOGE is seemingly exiting its recent consolidation phase, indicating that a potential breakout may be on the horizon. Trader Tardigrade has predicted that the breakout could trigger a price increase as high as $5, marking new all-time highs for DOGE.
At the time of writing, Dogecoin is trading at $0.33, reflecting a 3.5% increase in the last 24 hours. A surge to $5 would require the meme coin to record a staggering 1,415% surge from its current price.
Featured image created with Dall.E, chart from Tradingview.com
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