Dogecoin price forecast: Whales accumulate 1 billion DOGE within a week
Dogecoin (DOGE) whales have recently displayed a surge of interest in the popular meme coin, as they have accumulated over 1 billion DOGE in the past few days. In just one week, these well-capitalized investors have added $157 million worth of the cryptocurrency to their holdings.
This data was obtained by Finbold from Santiment on June 4. The analysis focused on Dogecoin addresses that held between 100 million and 1 billion DOGE. It is worth noting that the current chart indicates that these whales now possess 31.15 billion DOGE, with each Dogecoin valued at $0.157.
However, just a week prior on May 27, these addresses held 30.10 billion DOGE, meaning there has been a bullish accumulation of 1.05 billion coins.
Interestingly, a prominent cryptocurrency trader and on-chain analyst named Ali Martinez has also observed a similar trend in recent days. Martinez previously reported a 700 million DOGE accumulation, worth $110 million, from May 28 to May 31. Subsequently, the analyst identified a 200 million Dogecoin whale accumulation from May 30 to June 4.
DOGE has nearly doubled in price since February, when it was trading at around $0.085. During that time, Dogecoin had comparable trading and transaction volumes, amounting to approximately $864 million and $64 million, respectively.
The gradual decline in these two metrics prompted a period of accumulation, followed by a remarkable surge of nearly 100%. If this pattern continues, it is possible that the leading meme coin could experience a similar price movement and surpass the $0.22 mark reached in March.
Furthermore, Ali Martinez addressed the 47% price drop from the previous highs to Dogecoin’s price in May. The analyst posted a thread on May 1, showcasing DOGE breaking out from the descending triangle formed during this period.
According to Martinez, this suggests a recurring pattern observed in both 2017 and 2021. Specifically, drops of 40% and 56% were followed by significant pumps of 982% and 12,197% in each respective bull market.
The trader believes that this could propel DOGE to reach $1 initially, and potentially even surge further to $6. However, achieving these price levels would result in market capitalizations of $144 billion and $864 billion for Dogecoin, respectively, which are relatively high figures.
In conclusion, the recent accumulation of 1 billion coins by Dogecoin whales indicates a bullish sentiment. Technical analysis suggests that DOGE could surpass $1 per coin, but economic fundamentals may present challenges in reaching such levels.
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