Dogecoin is once again attracting the attention of large-scale investors. Despite a recent price drop, whales, institutional investors or individuals with vast amounts of crypto, have massively accumulated memecoin. This strategic move, supported by favorable technical indicators, suggests significant rebound potential for this iconic meme currency.
Rapid accumulation of crypto by whales
According to data from market intelligence platform IntoTheBlock, Dogecoin has recently seen significant transactions, totaling $1 billion. These transactions indicate a strong interest from whales in this crypto. Contrary to what one might expect after a price drop, these large-scale investors took advantage of the drop to buy more Dogecoin.
Net flows to exchanges have been negative over the past seven days, confirming that whales have been hoarding tokens rather than moving them to platforms for sale. This buying behavior during the dip reflects a strong belief in Dogecoin's rebound potential. Furthermore, this massive accumulation by major Dogecoin holders could play an important role in stabilizing and recovering the price, which has already started to show signs of recovery.
Rebound indicators and future prospects
In addition to accumulation by whales, several technical indicators signal rebound potential for Dogecoin. The market value to realized value (MVRV) ratio shows that the crypto is currently undervalued. Crypto analyst Kriss Pax recently predicted a significant rise in the price of Dogecoin, highlighting that the relative strength index (RSI) presents an optimistic pattern for the near future.
Pax recommends this moment as a buying opportunity, saying memecoin is unlikely to fall below its current price levels. Meanwhile, Crypto Kaleo, another analyst, predicts that Dogecoin could reach $1-2 in this bull cycle. Kaleo bases its forecasts on historical trends, noting that Dogecoin has often seen parabolic rises after periods of stagnation. He also raises the possibility of a brief drop to $0.08, similar to the 30% correction that occurred in August 2020 before a surge.
Finally, the growing dominance of altcoins in the market could usher in an altcoin season, during which Dogecoin is expected to benefit from a massive rally. Technical signals and behaviors of large investors indicate a high probability of recovery and substantial gains for Elon Musk's favorite crypto in the near future.
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