Dogecoin: crypto-whales make their move

Large investors, or "crypto-whales," are in the midst of buying Dogecoin (DOGE). What could this mean for the price of this memecoin?

The past few months have been anything but easy for Dogecoin. After peaking at around US$0.22 in March 2024, DOGE's value has more than halved. Although Elon Musk caused a small rebound last month, the price has since fallen again. Despite this decline, Dogecoin remains firmly entrenched in the top 10 cryptocurrencies with a market capitalization of nearly US$16 billion.

Whales buy big time

Dogecoin continues to attract the attention of big investors. According to IntoTheBlock, these whales have bought up more than 2 billion DOGE in recent days. This is the largest buyback since January 2024 and suggests that something big may be afoot behind the scenes.

Whale activity is often seen as an early indicator of upcoming price movements. When these large players begin to buy Dogecoin en masse, it may mean that they find the current price attractive and have confidence in the coin. Moreover, such purchases can also influence smaller investors, who often follow the whales' lead. This type of whale action is often followed by a period of high volatility - exactly what many DOGE investors are currently hoping for.

In addition to the whales, activity among ordinary users has also increased. At the end of September, the number of active Dogecoin addresses rose sharply, reaching nearly 80,000 by Oct. 1. This is a significant increase and could be a harbinger of things to come. The last time there were this many active addresses was in late January, just before Dogecoin experienced a strong rally.

Looking at the stock price: Is the $0.20 coming back in sight?

The increasing enthusiasm of both large and small investors shows that Dogecoin still has a lot of potential. However, there is still reason for caution: the important 0.11 US dollar barrier was broken on Oct. 6, but DOGE could not hold this level. At the time of writing, the price is hovering around US$0.1096. This is a critical point and could be a bearish signal if the bulls fail to recover the price.

While this does not sound particularly encouraging, Dogecoin has shown so-called "fake breakdowns" more often in the past, where the price temporarily dropped through key support levels, only to return explosively. If there is anything we have learned from DOGE, it is that this coin can always provide surprises.

Now what?

It is essential to keep a close eye on the whales' movements. If Dogecoin permanently loses the support of 0.11 US dollars, it could signal short positions. But if DOGE manages to regain this level, it could herald a new upward movement.

Of course, any uptrend will not be without volatility. Often after a sharp rise in share price, consolidation follows before the next move up. However, with the massive purchases of whales and increased activity in the network, the next rally seems to be getting closer and closer.