According to crypto analysis firm IntoTheBlock, Dogecoin (DOGE) whales have been stacking up on the meme coin over the last few days. According to the platform, whales increased their inflow from 46.25 million to 493.15 million DOGE on Sept. 11. The rise represents an increase of about 970%.
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Whale Accumulation And Market Impact
IntoTheBlock data shows that 62% of DOGE’s supply is held by large wallets, causing price swings in the event of whale accumulations and sell-offs. The platform also notes that 70% of DOGE holders are in profit, 26% are sitting on losses, and 3% are even.
Why Are DOGE Whales Buying?
The latest accumulation trend could be due to Elon Musk’s recent comment about being the “Dogefather.” Musk is an avid Dogecoin (DOGE) fan and has never stopped supporting the meme coin. Musk’s comments have often led to sporadic price spikes for the asset, irrespective of the larger market sentiment.
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Market Conditions And Future Predictions
DOGE whales may also be anticipating a rally in the crypto market following the announcement that inflation in the US came in lower than expected at 2.5%. The Federal Reserve has also announced interest rate cuts from this month.
Both developments could trigger a rally for the crypto market. Interest rate cuts usually lead to higher inflows in risky assets, like cryptocurrencies.
Will The Original Memecoin Rally?
According to CoinCodex analysts, Dogecoin’s (DOGE) price may consolidate over the next few days before dipping to $0.087 by the end of the month. Hitting $0.087 from current levels will translate to a dip of about 13.86%.
Changelly researchers also paint a similar picture for DOGE. The platform anticipates the asset’s price consolidating over the next few days before facing a correction. Changelly predicts DOGE will fall to $0.088 by the end of the month.
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