Dogecoin (DOGE) Price Continues to Consolidate despite Heightened Whale Accumulation Rate

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As a researcher with a background in cryptocurrency analysis, I find the recent developments surrounding Dogecoin (DOGE) intriguing. Based on the available data, it appears that Dogecoin has managed to maintain its position as the undisputed meme coin despite the emergence of new competitors. This is largely due to its deep liquidity and large community of holders.

As a crypto investor, I’ve noticed that the total market capitalization of cryptocurrencies has remained fairly steady over the past week, hovering around the $2.6 trillion mark. This comes as Bitcoin (BTC) price found a strong support level above $67,000. Unfortunately, Dogecoin (DOGE) hasn’t been so fortunate. Its price dipped by approximately 4 percent over the last five days and was trading at around $0.1595 during the London session on Friday.

As a crypto investor, I’ve observed that the large-cap altcoin, with its fully diluted valuation hovering around the $23 billion mark and an average daily trading volume of approximately $1 billion, continues to reign supreme as the undisputed meme coin kingpin. Despite new meme coins making their entrance in the crypto space lately, this particular asset has managed to maintain its throne through its established presence and strong community following.

As an analyst, I’ve observed that the Dogecoin network has gained a noteworthy status in the crypto market over the past few years. With its substantial liquidity, trading on this network is smooth and uninterrupted. Based on recent on-chain statistics at the time of this analysis, there were over 7.3 million holders actively participating in the Dogecoin ecosystem. This vibrant community facilitated approximately 334 million transactions.

Dogecoin (DOGE) Whales on a Buying Spree

Based on information from Santiment’s on-chain analysis, over the last three days, Dogecoin large holders, or whales, have bought over 700 million DOGE units, equivalent to around $112 million. This purchase has caused the number of Dogecoin addresses holding between 100 million and 1 billion units to aggregate approximately 30.9 billion DOGE units. Surprisingly, despite volatile market conditions, Dogecoin whales have intensified their buying activity in recent times.

As a financial analyst, I’ve observed some significant transactions in the Dogecoin market within the last 72 hours. Approximately 700 million dollars’ worth of Dogecoin, which translates to around $112 million at current prices, has been purchased by large investors, or “whales,” according to available data.

— Ali (@ali_charts) May 31, 2024

As a researcher studying blockchain data, I’ve noticed an intriguing development regarding Dogecoin transactions this week. The network experienced a significant surge in large-value transactions. More specifically, the number of Dogecoin transactions involving $100k or more worth of coins jumped from approximately $1.54 billion to around $3 billion within a day’s time. This substantial increase corresponds to nearly 8.26 billion units of Dogecoin being moved by whale investors, which earlier stood at only 9.74 billion units.

Favoring Fundamentals

Dogecoin’s large investors, or “whales,” have increased their transactions recently, leading to heightened activity on the Dogecoin blockchain. It is widely believed that these whales are optimistic about Elon Musk endorsing Dogecoin on a popular social media platform, potentially pushing the meme coin to a new record price.

According to Coinspeaker’s previous reports, Elon Musk has acquired money transmitter licenses in more than twenty American states in order to expand the capabilities of X and make it a versatile all-in-one application.

Musk has already linked Dogecoin transactions with SpaceX, indicating a strong likelihood of its inclusion in X’s system in the near future.

Midterm Targets

Since its creation about a decade ago, Dogecoin’s price trend has been generally ascending on a large scale. We’re currently witnessing the beginning of Dogecoin’s third significant cryptocurrency bull market. This bullish momentum was reinforced by a powerful price surge during the first three months of 2024.

The price of DOGE versus the US dollar encountered a notable barrier at roughly 22 cents, leading to continued adjustments in the market.

Starting around mid-April, Dogecoin’s price has fluctuated between $0.14 and $0.17 without showing any definitive signs of breaking above or below this range. If Bitcoin and Ethereum maintain their bullish trends in the near future, it is likely that Dogecoin’s price will mirror their movements over the coming weeks.

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2024-05-31 16:13