After a week of losses for major altcoins, Dogecoin (DOGE) is showing signs of coming back on track. Trading volume shot up by over 58% in the last 24 hours, reaching $600 million. This upswing coincides with increased activity from large investors, often referred to as “whales.”
Whales Accumulate Billions of DOGE
Weekend data from IntoTheBlock reveals a significant uptick in whale activity. Dogecoin whales accumulated a staggering 6.4 billion DOGE in a single day. This represents a significant jump from the weekly average of 5.37 billion DOGE. Notably, these transactions involve purchases of at least $100,000 worth of DOGE.
Whale Activity Signals Potential Price Increase
Historically, whale accumulation has often preceded price rallies in various cryptocurrencies. In the case of Dogecoin, this huge buying spree may indicate that whales are confident in a future price increase. However, the reality is far from such expectations. DOGE is currently down 1.59% in the last 24 hours, trading at $0.134.
Can the Rally Overcome Recent Downturn?
Despite the whale activity, Dogecoin faces an uphill battle to recover its previous market position. The coin is down over 7% in the past week. However, continued buying pressure from whales could create scarcity, potentially triggering a price surge.
Read Also: Dogecoin Dev: Crypto Excitement Comes With Risk, Invest Wisely
Dogecoin Influenced by Broader Market Trends
While the recent whale activity is positive news for DOGE, it is important to remember that the coin’s price is still heavily influenced by broader market trends. Dogecoin’s market cap of $19.4 billion leaves it in a susceptible position to movements in the overall cryptocurrency ecosystem.
Dogecoin Developer Warns Against Reckless Investment
Mishaboar, an influential Dogecoin developer, recently cautioned the community against investing in alternative cryptocurrencies without proper research and risk assessment. This highlights the importance of investors conducting their own due diligence before making any investment decisions.
