Analysis of on-chain metrics and wallets suggest that whales are accumulating Dogecoins. This is useful information for crypto enthusiasts and Dogecoin holders. When combined with the DOGE chart, we see that the case is strong for DOGE to break out in the coming months.
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Dogecoin (DOGE) is gaining attention as large investors—commonly referred to as ‘whales’—are actively accumulating the meme coin despite current market volatility. This trend of accumulation is a key factor that could shape the future of DOGE’s price as we move into the final months of 2024 or in 2025. In the end, this is consistent with our latest Dogecoin (DOGE) 2025 prediction.
This article dives into the latest on-chain metrics, whale activity, and price indicators, providing a comprehensive look at what’s driving this major accumulation and why it could lead to a bullish breakout in the coming weeks.
Whale Activity is Surging: What the Data Shows
Recent data highlights a significant rise in large Dogecoin transactions. In particular, transactions between $1,000 and $100,000 have surged by 3.96%, while even larger transactions over $100,000 are up by 0.09%.
These metrics indicate growing interest from major investors, who appear to be taking strategic positions as Dogecoin trades near key support levels.
The first chart below illustrates this rising interest among large investors, with a noticeable uptick in transaction volume for significant amounts of Dogecoin.
On-chain metrics reveal a substantial increase in the balance of addresses holding between 1 million and 10 million DOGE coins. This pattern of accumulation often marks the beginning of a price rally, as whales tend to acquire large amounts before driving up prices through increased demand.
“The following chart highlights the accumulation trend, showing a rise in the number of addresses holding large amounts of DOGE, which historically precedes price rallies.”
Whales Are Accumulating Dogecoin – Why it Matters for DOGE’s Price
Historically, when large holders accumulate Dogecoin, it signals growing confidence in the coin’s future prospects.
Whales tend to make long-term bets, and their buying patterns often precede price surges. As these key investors increase their positions, they effectively absorb market supply, setting the stage for potential upward price pressure.
With significant buying activity centered around the $0.10 level, whale accumulation suggests a strong support base is forming. This means that any dips below $0.10 could be quickly absorbed by these major players, making it harder for bears to push prices lower.
Chart Analysis: Can Whale Accumulation Lead to a Breakout?
Despite the bearish pressure seen in Dogecoin’s recent price action, the chart pattern hints that a bullish reversal is not very far away. It is not imminent, in our view, but certainly not far away.
DOGE is currently trading within a bullish triangle on the daily chart, a formation that suggests volatility is increasing, often leading to a breakout.
On our blog, we highlighted the technicals of DOGE: Dogecoin (DOGE) Price At a Critical Crossroads: Possible Scenarios for October 2024.
While this X post has a nice chart with a valid pattern on it, it misses a few crucial insights (a) the longer term chart which we published on our DOGE research page has a phenomenal multi-year rising trendline so the next chart X is too short term oriented (b) the Fibonacci level are key and proving more depth.
#Dogecoin is gearing up for a bullish breakout! Watch for two key signals:
⭕️First, RSI breaking the descending trendline on the daily chart.
⭕️And second, $DOGE surging past the $0.11 resistance! pic.twitter.com/7i1QMXNi3F— Ali September 19, 2024
What This Means for Dogecoin’s Future: Bullish Momentum Ahead?
The fact that whales ae accumulating Dogecoin is not only good news for DOGE but also an indicator that the broader crypto market may be shifting toward a ‘risk-on’ phase.
Historically, large-scale buying by major investors has coincided with bullish trends, and Dogecoin has often led the way as a bellwether for meme coins.
Should this trend continue, analysts predict that DOGE could reclaim key resistance levels by the end of 2024. A surge toward the $0.15 level is possible if whales maintain their buying momentum, with even more bullish targets of $0.241 or higher not out of reach.
Final Thoughts: Keep an Eye on the Whales
The recent wave of whale accumulation signals that something big might be brewing for Dogecoin. While risks remain, such as potential market corrections, the strong interest from large investors provides a solid foundation for optimism.
As we move into the final months of 2024, Dogecoin’s price action will likely be heavily influenced by whale activity. If accumulation continues, it could serve as the catalyst for a major breakout, potentially pushing DOGE closer to its previous highs.
It may take a few weeks, up to 2.5 months, until we get clarity (not later than Nov 28th, 2024).
Whether you’re a seasoned investor or just following the meme coin craze, one thing is clear: the whales are making moves, and the world should take notice.
