I Dogecoin price it may soon see another price rally following the recent rallying trend from crypto whales. Onchain data shows that these whales have bought billions of DOGE tokens in the past week, which may result in price increase with the premium meme coin.
Dogecoin Price May Converge As Whales Buy Over Two Million DOGE
Dogecoin price may increase as whales bought 2.07 billion DOGE tokens last week. The data from the market intelligence platform IntoTheBlock shows that this was the largest owner network within seven days. This netflow refers to the difference in how many of these there are Dogecoin whales withdrew from the trade and how much it transferred from the trade.
Interestingly, Bitcoinist reported that these Dogecoin whales were bought over 1 billion DOGE tokens ($108 million) in less than 24 hours, which further highlights the speed at which they have amassed a premium meme coin. This trend of crowding among these whales undoubtedly has a value in the price of Dogecoin, as it may start a meeting of the meme character.
Crypto analyst Ali Martinez also indicated that a price rally is imminent, considering how these whales want to gain exposure to the leading meme coin. He said the number of large transactions on the network continues to rise, suggesting that institutional players and DOGE whales position themselves in a potential location.
These investors will hope that the next price recovery of Dogecoin will start the meme coin, considering that DOGE is still lagging behind the broader crypto market, including other meme coins. Although DOGE boasts a year-to-date (YTD) gain of over 21%, it pales in comparison to the price gains of other leading meme coins such as Pepe (PEPE) and Dogwifhat (WIF) they recorded.
Other Factors That Can Affect Price Discovery
External factors such as the macro side can affect Dogecoin’s price recovery. Bitcoinist reported that the meme coin price crashed recently due to market uncertainty caused by the latest US jobs report, political disagreements and the upcoming US presidential election. Therefore, these factors can prevent any Dogecoin price rally until investors are sure how these events can play out.
On the larger side, the US Consumer Price Index (CPI) inflation data scheduled to be released on October 10 will direct these investors to allocate more money to risk assets like Dogecoin. This data may determine whether the US Fed will cut interest rates by 50 basis points (bps) in November FOMC meeting.
A 50 bps rate cut gives the Dogecoin perspective. It will increase the appetite of investors and increase their confidence in investing in crypto currencies like DOGE.
At the time of writing, the price of Dogecoin is trading around $0.1092, up about 2% in the last 24 hours, according to the report. data from CoinMarketCap.
The featured image was created with Dall.E, a chart from Tradingview.com
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