7 months ago
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Dogecoin is grabbing headlines and speculation from its wide community of investors after a recent whale accumulation from a crypto exchange. On-chain data shows an accumulation trend from this whale, with the latest being the acquisition of 300 million DOGE tokens worth $45 million at the current market price.
These speculations have led to theories on who the whale buyer might be amidst a continued price decline for Dogecoin, with the most prominent hypothesis being billionaire Elon Musk.
Whale Accumulating Dogecoin
Dogecoin is currently on an extended price decline, with its price now down by 25.8% in the past seven days. However, on-chain data shows that a particular whale has been buying the dip, which is a testament to their strong belief in the cryptocurrency.
Whale Alerts, a crypto whale transaction tracker, noted a DOGE accumulation from crypto exchange Robinhood into the private wallet “DDuXGM” amidst a flurry of other whale transactions in other cryptocurrencies. The transaction involved the movement of 150 million DOGE worth $23.5 million from Robinhood into the unknown wallet.
It is interesting to note that a further investigation into the whale’s on-chain activities reveals that this was not a one-time buy. The whale had acquired another 150 million and 30 million DOGE tokens worth $23.1 million and $4.8 million respectively in the hours before the last purchase.
Elon Musk’s tweets in the hours leading up to the purchase have only fueled speculation that he may be the whale. Just hours before, the billionaire tweeted a meme picture mentioning Dogecoin, which led to some speculations among investors. Musk has been a vocal proponent of Dogecoin for months, and his tweets are known to cause spikes in the price of DOGE. However, it is important to note that his recent tweet failed to do many wonders for the price of DOGE as the crypto continued on its month-lasting correction.
At this point, there are more questions than answers about the mysterious $46 million Dogecoin purchase. Was it indeed Elon Musk or another whale quietly accumulating DOGE? At the time of writing, this whale address “DDuXGM” is holding 2.478 billion DOGE tokens worth $363.6 million.
According to MartyParty, a prominent crypto influencer, the accumulation could be in response to a recent announcement from BITMAIN, a company producing crypto mining equipment. BITMAIN recently revealed its plans to expand support for DOGE mining after its Antiminer L9 release in May. Bitmain’s Antiminer L9 model will support mining operations for Litecoin, Dogecoin, and Bells (BEL), which are some of the still-existing proof-of-work blockchains.
At the time of writing, DOGE is trading at $0.144, down by 8.15% in the past 24 hours. The significant price correction in the last day means Dogecoin is now in red in a monthly timeframe, and it is now down by 4.55% in the past 30 days.
Featured image from CryptoStars, chart from Tradingview.com
