Are Dogecoin Whales Positioning Themselves For A Bullish Breakout?

Prominent crypto pundit Ali Martinez took to the X platform to share an interesting on-chain insight into the activity of whales and other large investors

Dogecoin price analysis reveals a potential bullish trend in the making. After a lackluster September performance, Dogecoin price has faced bearish pressure. But a close examination of on-chain activity suggests a different story.

CryptoSlate analysis reveals that large investors, often referred to as whales, have been accumulating Dogecoin rapidly. But what does this mean for the meme coin price?

Here's a quick glance at DOGE price analysis before we proceed.

DOGE price analysis: A quick glance

At the time of writing, Dogecoin price is valued at about $0.1088, with a minimal decrease of 0.6% in the last 24 hours. However, DOGE is trading at a loss of more than 16% over the past week.

Despite the slowdown in Dogecoin's recovery, investors may want to keep an eye on bullish on-chain movements. Additionally, October has been a historically positive month for Dogecoin.

Dogecoin price analysis: Large investors accumulating DOGE rapidly

Prominent crypto YouTuber Ali Martinez shared an interesting on-chain observation on the X platform, highlighting the activity of whales, large investors, over the past few days.

One key indicator is the IntoTheBlock large transactions metric, which counts the number of token transfers exceeding $100,000.

Given the magnitude of these transactions, this cohort of investors comprises whales and institutional players. In the crypto space, the term "whales" typically refers to entities (both individuals and organizations) that hold substantial amounts of a particular cryptocurrency, thereby exerting significant influence on the market dynamics.

Martinez points out that the number of large Dogecoin transactions has been rising steadily. A surge in large transactions can indicate either the accumulation by institutional players and whales ahead of a price upswing or the distribution of their assets.

It's important to note that the IntoTheBlock large transactions metric doesn't provide clear directionality on the nature of these transfers. However, a recent data point revealed that Dogecoin whales (with at least $10 million) have bought over 1 billion DOGE (worth over $108 million) in one day.

While this confirms the accumulation by large holders, it leaves other investors speculating on the motive behind their actions.

Nevertheless, the increased activity by institutional investors and whales could drive a bullish narrative for Dogecoin, bolstering belief in the meme coin's long-term potential. This may amplify market volatility, paving the way for substantial upward price movements.

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