Bitrabo Editorial
Dogecoin’s price may soon experience a rally, spurred by increased buying activity from major investors referred to as crypto whales. Recent blockchain data indicates that these whales have acquired billions of DOGE tokens in the past week, potentially setting the stage for a price increase for this popular meme cryptocurrency.
Dogecoin Poised for a Rally with Over 2 Billion DOGE Purchased
Recent activity shows that crypto whales have purchased approximately 2.07 billion DOGE tokens within a week. According to IntoTheBlock, this figure represents the net flow from significant holders, which tracks the amount withdrawn from exchanges versus transfers made to exchanges.
Moreover, Bitrabo highlighted that these whales bought more than 1 billion DOGE tokens, valued at about $108 million, in less than a day, showcasing their aggressive accumulation of this meme coin. This trend among whales is a strong bullish indicator for Dogecoin’s pricing prospects, hinting at a potential rally.
Crypto analyst Ali Martinez also suggested that a price increase is likely, given the growing interest from these significant investors. He noted a rise in large transaction volumes on the network, signaling that both institutional investors and Dogecoin whales are preparing for a possible price surge.
These investors are optimistic that a forthcoming recovery in Dogecoin’s price could launch a bullish trend for the coin. Despite Dogecoin achieving a year-to-date (YTD) increase of over 21%, it has underperformed relative to other meme coins like Pepe (PEPE) and Dogwifhat (WIF), which have seen more significant gains.
Additional Factors Impacting Dogecoin’s Price Recovery
Various external factors may influence Dogecoin’s pricing rebound. As Bitrabo pointed out, the meme coin’s price recently dropped due to market uncertainty stemming from reports on US employment, geopolitical tensions, and the upcoming presidential elections. These external influences could delay a price increase until investors have more clarity on these situations.
Moreover, the Consumer Price Index (CPI) inflation data scheduled for release on October 10 will be crucial for investors seeking to decide whether to invest more in risk assets like Dogecoin. This report could influence whether the US Federal Reserve opts for a 50 basis points (bps) interest rate cut during the upcoming FOMC meeting in November.
A cut of 50 bps could encourage a positive outlook for Dogecoin, increasing investor appetite for riskier investments and boosting confidence in the cryptocurrency market.
Currently, Dogecoin is trading around $0.1092, reflecting an increase of nearly 2% in the past 24 hours, as per CoinMarketCap.