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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.
Source: X
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.
Source: X
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
