Whales now control around 11% of the meme coin’s circulating supply.
Dogecoin has been among the best-performing cryptocurrencies (at least in the top 100) over the past week.
The recent whale behavior signals that the asset could be gearing up for a further ascent, while certain analysts envision a price explosion in the coming months.
Buying More
The undisputed leader in the meme coin niche has pumped by 12% on a seven-day scale and is currently worth around $0.11 (per CoinGecko data). Its market capitalization has reached $17 billion, widening the gap with Shiba Inu, which reclaimed the second position.
DOGE’s rally comes on the back of increased appetite from the large investors. The popular analyst Ali Martinez revealed that whales have scooped up 160 million coins (equivalent to approximately $17.6 million) in 96 hours. This group of market participants now holds roughly 18.15 billion DOGE, or 11% of the circulating supply.
Purchases of this type reduce the number of tokens available on the market, which could trigger a price ascent (should demand remain constant or increase). They also signal confidence from the big players, and smaller investors could follow their lead.
Earlier this month, the on-chain analytics platform Santiment disclosed that Dogecoin’s whales have hit a six-month high in activity, with 739 transfers of more than $100,000 in a single day. Moreover, the total holdings of the 149 investors who hold at least 100 million DOGE each surged to a record 108.52 billion coins.
Many analysts on X believe the meme coin has yet to post substantial gains. The one using the moniker Celal Kucuker recently argued that DOGE is the only major altcoin capable of a 20x increase and forecasted that its price could explode to $2.20 by May next year.
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The Bearish Signals
Despite the positive momentum, certain indicators suggest DOGE could experience a pullback in the near future. One of those is the Relative Strength Index (RSI), whose ratio has soared past 70, meaning that the asset has entered overbought territory. The technical analysis tool runs from 0 to 100, and conversely, anything below 30 is interpreted as a buying opportunity.
Another bearish factor is DOGE’s recent exchange netflow. Over the past several days, inflows have surpassed outflows, suggesting that investors have moved holdings from self-custody towards centralized platforms, thereby increasing immediate selling pressure.
