Despite the anticipated widespread liquidations following the recent decline in DOGE prices, Dogecoin whales view this downturn as an excellent opportunity. These investors, recognizing the dip as a favorable entry point, are now acquiring Dogecoin in substantial quantities, with recent transactions showing purchases totaling 270 million DOGE.
Massive Acquisition of 270 Million DOGE by Whales
The recent drop in Dogecoin’s value has driven large investors, referred to as “whales,” to gather more tokens. Notably, crypto analyst Ali Martinez shared on X (formerly Twitter) that these whales have amassed an impressive 270 million DOGE tokens over the past five days.
This significant purchase is part of a wider trend observed among meme coin investors, where whales have been acquiring hundreds of millions of DOGE since November amid the ongoing downturn.
On December 21, Martinez revealed that Dogecoin whales had acquired an additional 250 million DOGE during the recent market slump. This strategic move reflects investors’ view of DOGE’s decline as a prime opportunity, characteristic of larger players eager to buy at lower prices for potential long-term rewards.
The current buying activity by whales may reflect considerable confidence in Dogecoin’s future. Martinez expressed optimistic views on the coin’s price trajectory, suggesting in a previous X post that DOGE might reach a new all-time high of $20.
With a prevailing bullish sentiment around DOGE’s price, these whales are capitalizing on favorable market conditions and adjusting their holdings, positioning themselves for a potential rally. Currently, Dogecoin trades at $0.33, making the recent 270 million DOGE purchase worth approximately $89 million.
Historical Patterns Suggest DOGE Could Reach $5
Crypto analyst Trader Tardigrade has shared a chart depicting a recurring historical trend within Dogecoin’s price movements. According to the analyst, a recurrence of this historical trend could lead to a parabolic rally for Dogecoin.
In the chart, the red curved lines mark DOGE’s rounded consolidation phases across different cycles, while the green ascending lines indicate a consistent bullish trend. Each consolidation stage in the chart has historically resulted in substantial price rallies, culminating in explosive price increases.
Based on this historical pattern, DOGE appears to be moving out of its recent consolidation phase, suggesting a breakout may be forthcoming. Trader Tardigrade predicts that this breakout could elevate the price as high as $5, representing a new all-time high for DOGE.
As of now, Dogecoin is trading at $0.33, reflecting a 3.5% increase over the last 24 hours. Achieving a price of $5 would require an extraordinary 1,415% surge from its current value.
Featured image created with Dall.E, chart from Tradingview.com
