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The Dogecoin price could soon witness another price rally following a recent accumulation trend from crypto whales. Onchain data shows that these whales have bought billions of DOGE tokens in the last week, which could trigger a price surge for the foremost meme coin.
Dogecoin Price Could Rally As Whales Buy Over 2 Billion DOGE
The Dogecoin price could surge as whales have bought 2.07 billion DOGE tokens in the last week. Data from the market intelligence platform IntoTheBlock shows this was the large holder’s netflow over the seven days. This netflow refers to the difference in how much these Dogecoin whales withdrew from exchanges and how much they transferred to exchanges.
Interestingly, Bitcoinist reported that these Dogecoin whales bought over 1 billion DOGE tokens ($108 million) in under 24 hours, further highlighting the pace at which they have accumulated the foremost 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 rally is imminent, considering how these whales want to gain exposure to the foremost 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 potential upside move.
These investors will hope that the next Dogecoin price recovery will kickstart the meme coin’s bull, considering that DOGE has so far lagged behind the broader crypto market, including other meme coins. Although DOGE boasts a year-to-date (YTD) gain of over 21%, it is nothing compared to the price gains that other leading meme coins like Pepe (PEPE) and Dogwifhat (WIF) have recorded.
Other Factors That Could Affect A Price Recovery
External factors like the macro side could affect a Dogecoin price recovery. Bitcoinist reported that the meme coin’s price crashed recently due to market uncertainty caused by the recent US job report, geopolitical tensions and the upcoming US presidential elections. Therefore, these factors could hinder any price rally for Dogecoin until investors are confident about how these events could play out.
On the macro side, the US Consumer Price Index (CPI) inflation data set to be released on October 10 will guide these investors on whether to allocate more capital to risk assets like Dogecoin. This data could determine whether the US Fed will cut interest rates by 50 basis points (bps) at its November FOMC meeting.
A 50 bps rate cut provides a bullish outlook for Dogecoin. It will increase investors’ risk appetite and boost their confidence in investing in crypto assets like DOGE.
At the time of writing, the Dogecoin price is trading at around $0.1092, up almost 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
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