The Dogecoin price There could be another price surge soon following the recent accumulation trend from cryptocurrencies. Onchain data shows that these whales bought billions of DOGE tokens last week, which could cause a stir enhance in prices for the most significant meme coin.
The price of Dogecoin may enhance when whales buy more than 2 billion DOGE
The price of Dogecoin may enhance as whales bought 2.07 billion DOGE tokens last week. Data from market intelligence platform IntoTheBlock shows that this was the net flow of a vast holder over a seven-day period. This net flow refers to the difference in their size Dogecoin whales they withdrew from the stock exchanges and how much they transferred to the stock exchanges.
Interestingly, Bitcoinist reported that these Dogecoin whales were purchased over 1 billion DOGE tokens ($108 million) in less than 24 hours, further highlighting the speed at which they have accumulated the premier meme coin. This trend of accumulation among these whales is undoubtedly bullish for the price of Dogecoin as it could trigger an enhance in the price of the meme coin.
Crypto analyst Ali Martinez also pointed out that a price enhance is inevitable considering how these whales want to gain exposure to the leading meme coin. He stated that the number of vast transactions on the network is constantly increasing, which suggests institutional players and DOGE whales are preparing for a potential move higher.
These investors will be hoping that Dogecoin’s next price rebound will spark a meme bull, given that DOGE has so far lagged the broader cryptocurrency market, including other meme coins. While DOGE boasts a year-to-date (YTD) gain of over 21%, this is nothing compared to the price increases of other leading meme coins such as Pepe (PEPE) and Dogwifhat (WIF) they recorded.
Other factors that may influence price improvement
External factors such as macro could influence Dogecoin’s price rebound. Bitcoinist reported that the price of meme coin has dropped recently due to market uncertainty caused by the latest US jobs report, geopolitical tensions and the upcoming US presidential election. Therefore, these factors could make it challenging for Dogecoin to see any price growth until investors are clear on how these events may play out.
In macro terms, the US Consumer Price Index (CPI) Inflation data due out on October 10 will guide investors on whether to allocate more capital to risky assets like Dogecoin. These data may determine whether the US Fed will cut interest rates by 50 basis points (bps) in November FOMC meeting.
A 50 basis point interest rate cut provides a bullish outlook for Dogecoin. It will enhance investors’ risk appetite and enhance their confidence in investing in crypto assets such as DOGE.
At the time of writing, Dogecoin is trading at around $0.1092, up almost 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
