The Dogecoin price could soon witness another price surge following a recent crypto whale accumulation trend. Onchain data shows these whales bought billions of DOGE tokens in the past week, which could be a trigger a price increase for the main meme coin.
Dogecoin Price May Rise as Whales Buy Over 2 Billion DOGE
The Dogecoin price could rise as whales bought 2.07 billion DOGE tokens in the past week. Facts the market information platform IntoTheBlock shows that this was the net flow of the large holder for seven days. This net flow refers to the difference in how much this Dogecoin whales withdrew from exchanges and how much they transferred to exchanges.
Interestingly enough, Bitcoinist reported that this Bought Dogecoin whales more than 1 billion DOGE tokens ($108 million) in less than 24 hours, further highlighting the speed at which they have amassed the top meme coin. This accumulation trend among these whales is undoubtedly bullish for the Dogecoin price as it could trigger a rally for the meme coin.
Crypto analyst Ali Martinez also indicated that the price increase is imminent given how these whales are looking to gain exposure to the top meme coin. He stated that the number of large transactions on the network continues to rise, suggesting that institutional players and DOGE whales are positioning themselves for a possible upward move.
These investors will be hoping that Dogecoin’s next price recovery will boost the meme coin’s bull, given that DOGE has thus far lagged the broader crypto market, including other meme coins. While DOGE boasts a year-to-date (YTD) gain of over 21%, this is nothing compared to the price gains seen by other leading meme coins such as Pepe (PEPE) and Dog hat (WIF) have recorded.
Other factors that could influence a price recovery
External factors such as the macro side could influence a Dogecoin price recovery. Bitcoinist reported that the The price of the meme coin collapsed recently due to market uncertainty caused by the recent US jobs report, geopolitical tensions and the upcoming US presidential elections. Therefore, these factors could hinder any price appreciation for Dogecoin until investors have confidence in how these events could play out.
On the macro side the US Consumer Price Index (CPI) The inflation data released on October 10 will guide these investors as to whether they should allocate more capital to risky assets like Dogecoin. This data could determine whether the US Fed will cut rates by 50 basis points (bps) in November FOMC meeting.
A 50 basis point rate cut offers a bullish outlook for Dogecoin. It will increase investors’ risk appetite and increase their confidence in investing in crypto assets like DOGE.
At the time of writing, the Dogecoin price is trading around $0.1092, up almost 2% in the past 24 hours, according to facts from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com