Whales Accumulate 1 Billion DOGE in a Week, Driving Dogecoin Price Forecast

Dogecoin (DOGE) whales have displayed a surge in interest for the popular meme coin, as they have accumulated over 1 billion DOGE in the past few days. According to data obtained by Finbold from Santiment on June 4, these highly capitalized investors now hold a total of 31.15 billion DOGE, valued at $0.157 per Dogecoin. This is a significant increase from the previous total of 30.10 billion DOGE on May 27, indicating an accumulation of 1.05 billion coins.

Interestingly, well-known cryptocurrency trader and on-chain analyst Ali Martinez has also noticed a similar pattern in recent days. Martinez previously reported a 700 million DOGE accumulation from May 28 to May 31, worth $110 million. In a subsequent update, the analyst revealed a further acquisition of 200 million Dogecoins made by a whale from May 30 to June 4.

The price of DOGE has nearly doubled since February, when it was trading at around $0.085. During that time, Dogecoin had a similar trading and transaction volume to its current levels of approximately $864 million and $64 million, respectively. The gradual decline in these metrics led to a period of accumulation, followed by a remarkable surge of almost 100%. If this pattern continues, the leading meme coin could potentially experience another price increase above $0.22, which was reached in March.

Furthermore, Martinez discussed the 47% price drop that occurred in May from the coin’s all-time highs. On May 1, the analyst posted a thread showing that DOGE broke out of a descending triangle pattern that had formed during that period. Martinez believes this indicates a similar pattern observed in 2017 and 2021, where drops of 40% and 56% were followed by massive pumps of 982% and 12,197% in each bull market, respectively. The trader speculates that this could potentially push DOGE to reach $1 initially, and possibly even $6 in the future. However, these price levels would require Dogecoin to have market capitalizations of $144 billion and $864 billion, respectively, which are quite high.

In conclusion, the accumulation of 1 billion DOGE by Dogecoin whales indicates a bullish sentiment in the market. Technical analysis suggests that DOGE could surpass $1 per coin, but economic factors may present challenges in reaching that milestone.

Disclaimer: The information provided in this article should not be considered as investment advice. Investing in cryptocurrencies carries risks, and your capital is at risk.