Last week was a particularly good week for DOGE. The meme coin experienced a surge in trading volume during the week that allowed it to successfully surpass the $0.22 price mark for the first time since November 2021. This spike saw the price of DOGE increasing by as much as 33% during the week, outperforming the likes of Bitcoin and other large market-cap cryptocurrencies.
Interestingly, the price surge was on the back of increased activity from whales, as indicated by on-chain data. The increased activity led to an increased accumulation trend from this cohort of traders, as noted by crypto analyst Ali Martinez. According to the analyst, Dogecoin whales purchased 1.40 billion DOGE over the past two weeks, worth around $280 million.
Dogecoin Whales Filling Up Their Bags
According to the Santiment chart shared by Ali Martinez on social media, whale wallets holding between 10 million to 100 million DOGE tokens have constantly been increasing their holdings since March 15. This accumulation trend led to the whales increasing their total holdings by 1.40 billion DOGE to a total of 16.7 billion DOGE at the time the metric was shared.
It’s important to note that this accumulation, worth around $280 million, is the highest recorded in a two-week period since Dogecoin’s shot to mainstream popularity in the 2021 bull market.
What’s Next For DOGE?
The chart shared by Martinez showed that the increase in whale accumulation largely corresponded with an increase in the price of DOGE. This is a recurring trend among cryptocurrencies, as crypto whales are generally known to move the market. At the same time, Dogecoin saw a surge in open interest, setting a new record of $2.2 billion.
Bitcoin is now trading at $70.730. Chart: TradingView
DOGE has since reversed by 7% since its foray into the $0.22 price level, although still up by 18.9% in the past seven days. According to CoinMarketCap, at the time of writing, DOGE is trading at $0.2064 with a market capitalization of $29.6 billion. A continued accumulation from the whales could lead to Dogecoin resuming the price spike in the new week.
With new money pouring in and whales making big buys, the short-term outlook for Dogecoin looks positive. As reported by NewsBTC, various factors point to DOGE reaching the $1 mark before the end of the current bull market phase.
However, the meme coin now faces a major resistance at $0.22. A successful breakout of this price resistance could give Dogecoin a clear path to $0.35.
According to data from IntoTheBlock, around 602,000 addresses purchased DOGE at an average price of $0.35 and still waiting to break even. This remains a key price level to consider as a break-even could lead to a potential sell-off from some of these addresses.
Featured image from Pixabay, chart from TradingView