TL;DR
- Large investors bought 750 million DOGE during the recent dip, potentially setting the stage for a price rebound.
- While some analysts expect a further drop to $0.17, historical trends suggest the possibility of another explosive bull run for Dogecoin in the coming months.
Time for a Reversal?
The cryptocurrency market has suffered substantial losses in the past week, mainly due to the crash witnessed on February 3. Bitcoin (BTC) is down 6% for that timeframe but it was the altcoins that took the major hit.
The OG meme coin, Dogecoin (DOGE), was among the biggest losers, with its price plunging well below $0.30 and tanking by 21% weekly (per CoinGecko’s data).
However, it seems like whales have interpreted the downtrend as a “buy the dip” opportunity and increased their exposure to the asset. X user Ali Martinez revealed that large investors purchased 750 million tokens (worth almost $200 million) during the correction. “This is a strong sign of confidence in the market,” the analyst claimed.
Whale accumulation is often seen as a bullish signal since it could make some traders follow suit and thus trigger a potential price uptrend. The buying spree also leaves fewer assets available on the open market, meaning DOGE’s valuation might head north (assuming demand remains constant or increases).
The whales’ latest actions contrast to those at the beginning of the month. Back then, they offloaded 270 million DOGE in the span of 24 hours, which was shortly after, followed by a price decline.
DOGE Predictions
The meme coin’s market dynamics have caused numerous people to speculate on its next potential move. The X user AMCrypto assumed that DOGE might be headed for a further decline to as low as $0.17 before rallying toward a new all-time high.
Trader Tardigrade and KALEO also chipped in recently. The former forecasted a massive bull run, citing the token’s historical performance:
“In the 2016 pullback, DOGE retraced 59.76%, followed by a +9,221% bull run. In the 2020 pullback, DOGE retraced 56.2%, followed by a +30,693% bull run. When in doubt, check the macro chart.”
KALEO was bullish, too, seeing $0.25 as “a solid entry and practically free compared to where we’ll see it a few months from now.”
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