The on-chain activities of Dogecoin have reached a significant level as a large investor transfers 250 million DOGE to Robinhood and 83 million DOGE to a blockchain address.
An analyst has noticed a pattern from 2018 to 2021 that could potentially drive Doge to $1.5.
Investors are anticipating a retest and a new all-time high for the price of Dogecoin as they wait for catalysts, which in the previous bull cycle were largely influenced by Elon Musk’s involvement. In preparation for the upcoming Bitcoin halving, major investors have started moving large amounts of the asset, as seen in a transaction reported by Whale Alert. This transaction involved a staggering 250 million DOGE ($49 million) transferred from an unknown wallet to the Robinhood trading platform. Shortly after, another substantial amount of 83 million DOGE ($17.3 million) was moved to an unknown blockchain wallet. Interestingly, this has sparked speculation within the Doge community that these transactions may have been facilitated by Elon Musk.
Musk has shown great enthusiasm for Dogecoin, with his controversial tweets causing the price to reach an all-time high of $0.73 on May 8, 2021. These transactions have taken place at a time when Musk’s company is reportedly obtaining payment operation licenses in three additional US states. Amidst all this activity, the Dogecoin community eagerly awaits the integration of their beloved meme coin into Musk’s social media platform, X.
Whale activities in Dogecoin have been on the rise. The asset has been experiencing an upward surge since reaching a 27-month high of $0.228. Analysts note that Doge has closely followed the price movement of Bitcoin, but its recent rise to $0.2153 after a 6% daily increase indicates a bullish sentiment among investors. Currently, Doge has a seven-day return of 21% and has also seen a 1.27% surge in the past 24 hours, trading at $0.20. Interestingly, the weekly price movement has been largely influenced by recent purchases made by whales.
Before the most recent whale transfer, whales had acquired 1.4 billion DOGE, worth $280 million, in the past two weeks, bringing their total holdings to 16.7 billion DOGE. Whale wallets holding between 10 million and 100 million DOGE tokens have consistently increased their holdings since March 15.
A noteworthy observation is that most of these whales are long-term investors, whose positions could steadily drive the asset’s price in a sustained manner. Despite its weekly on-chain activities, the price is still 70% lower than its all-time high. Additionally, its market cap of $30 billion is significantly lower than the $75 billion recorded during the peak of the previous bull market. However, Doge has surpassed Avalanche (AVAX) and Cardano (ADA) to become the 8th largest coin. It is currently trailing USDC and XRP by $2 billion and $3 billion, respectively.
Speaking about Dogecoin, analyst Ali Martinez has identified a pattern similar to the one seen from 2018 to 2021. According to Martinez, the weekly price chart previously formed a descending triangle pattern that emerged after the peak in May 2021. The asset has recently broken above the upper trendline of the triangle, invalidating the bearish sentiment typically associated with this pattern. In summary, if this prediction is confirmed, the price of Dogecoin is expected to reach as high as $1.5.
“I feel my fellow degens have been distracted with the new shiny meme coins, but Dogecoin remains the most important altcoin in this sector. From a technical perspective, DOGE seems to mirror the 2018-2021 pattern. If so, DOGE could be at the very beginning of a massive parabolic bull run!”
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