This Altcoin is at the Top of the Whale Menu! And Why?
There has been a massive sell-off in the cryptocurrency market. Despite the overall negative sentiment in the Bitcoin and altcoin market, whales focused on Dogecoin (DOGE) during this period.
Increase in the number of addresses holding DOGE
As BullBNB, a crypto trader, explained, last week saw a 5.13% increase in the number of addresses with between 100 million and 1 billion DOGE. In addition, about six more whales joined the network. This brought an additional 620 million DOGE to the network.
Dogecoin: The number of addresses holding 100M - 1B DOGE increased by 5.13% last week. About 620 new whales joined the network, collecting around 6 million DOGE. With this in mind, I'm going to buy a brand new DOGE bag.
In light of this, the trader recently tweeted, "I'm about to buy a new DOGE bag." The recent whale activity was a big surprise for DOGE holders and traders. So what compelled the whales to search for DOGE?
Time to buy the dip for altcoins?
As you have been following on cryptoify.blogspot.com, the current market environment is extremely negative for most cryptocurrencies. The release of the US CPI report and fears of a Fed rate hike triggered a widespread sell-off in equity and crypto markets. Cryptocurrencies followed a bearish path, while the dollar hit new highs.
At press time, meme-coin was down 9.94% from its September 12 peak. According to crypto analyst Jet Encila, even if DOGE showed bullish signals, it was not enough to prevent a 9.56% drop on September 18. The analyst speculates that this drop would have prompted whales to accumulate DOGE supplies instead of selling them. Accordingly, whale activity has now increased. So what does this mean for DOGE?
Dogecoin bull behavior
The rise of DOGE came as a surprise as the cryptocurrency market, especially Bitcoin and Ethereum, continue to fall. The analyst attributes the surge in price to the whales' recent overbuying of DOGE. At press time, DOGE was trading at $0.066041, up 9.4% over the past seven days, according to data from Coingecko.
According to the analyst, this shows that meme-coin is leading the crypto market. It also means that it gives the entire crypto market hope that there is a respite on the horizon. But investors and traders need to ask whether this is really a flash in the pan or a lasting bull trend. The analyst offers the following assessment:
DOGE tested the resistance level at 0% Fib. It also responded with a long rejection wick followed by a red candle. It is possible that this is the beginning of a short correction period for DOGE that will lead to a slight price decline. In the coming days, we can expect to receive additional information.
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| DOGE's total market capitalization daily chart / Source: TradingView |
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