Key Takeaways:
- Whales have amassed nearly 310 million DOGE in the last 24 hours, according to top analyst Ali Martinez (@ali_charts).
- Long-term investors are growing their positions, while short-term traders are exiting, indicating that a potentially bullish structure is building up.
- Famous trader known as Trader Tardigrade (@TATrader_Alan) anticipates DOGE to bounce off a critical support zone, potentially aiming for $1 over time.
Recently, the cryptocurrency markets have shown some signs of weakness, with a broader crypto market capitalization falling by more than 4%, from $3.84 trillion to $3.74 trillion in the past 24 hours.
Dogecoin (DOGE) price fell in line with the overall market sentiment, dropping more than 7% in a single day at the time of writing. Nonetheless, this short-term price downturn has resulted in a significant divergence with on-chain data, indicating a substantial increase in whale accumulation.
This pattern was observed by famous analyst Ali Martinez, with over 145K followers on X, who tweeted—
Whales bought 310 million Dogecoin $DOGE in the last 24 hours!
According to data from Santiment, DOGE’s price rally over the past month was driven by long-term buyers stepping in while short-term holders, who held for around 90 days, began selling or moving their holdings. The move can be traced back to the declining 90-day Mean Dollar Invested Age (MDIA).
The metric tells about the average age of each dollar invested in a coin’s market capitalization.
At the same time, the 5-year MDIA is steadily rising, indicating that long-term holders are accumulating gradually. A sign that whales are holding their position in the memecoin.
As the price of DOGE declined in the short term, the network experienced increased user activity, as depicted by a surge in Daily Active Addresses (DAA) due to whales accumulating. The increase in DAA indicates bullishness, but the price has yet to react in line with this on-chain metric.
DOGE to New-Highs?
According to Trader Tardigrade, an influential trader on X with over 75K followers, going by the username @TATrader_Alan, is extremely bullish on DOGE. The chart displayed in the trader’s tweet shows the price of DOGE to Bitcoin (BTC) during a four-hour period. The chart now indicates that Dogecoin is in an oversold position, which means it has dropped significantly and may be due for a bounce.
The trader believes that similar setups have previously resulted in significant upward swings. The price is also near a support line, which typically serves as a “floor” to keep prices from falling further. Further, he anticipates DOGE to rise soon and even make a significant move higher. It’s like a coiled spring about to pop, but it depends on the support holding up.
Conclusion
Despite a short-term price drop, these on-chain measures signify whales’ accumulation and long-term holders’ confidence in the memecoin.
According to bullish patterns identified by @TATrader_Alan, the trader says that DOGE appears to be in a good position to resume its uptrend in the short to medium term.
All content provided here is for informational purposes only and does not constitute financial or trading advice. Trading involves risk and may result in financial loss. We strongly recommend consulting a licensed advisor before making any investment decisions.
