The recent DOGE price drop could have led to massive liquidations, but Dogecoin whales took advantage.
These whales are now buying Dogecoins in large quantities, with the last transaction being 270 million.
They see this drop as an entry into a cheap market. The recent drop in the price of Dogecoin has prompted wealthy investors, known as “whales,” to buy more coins.
On Tuesday, prominent cryptocurrency researcher Ali Martinez revealed on X (formerly Twitter) that Dogecoin whales bought 270 million DOGE coins in five days.
This massive 270 million DOGE purchase is part of an accumulation trend across the cryptocurrency network.
Martinez has seen whales buy hundreds of millions of DOGE during the downturn since November.
The expert said on December 21 that Dogecoin whales bought 250 million DOGE during the market downturn.
Since DOGE's drop was a good time to get in, investors made this bold move, a common practice among larger players who buy tokens at cheaper prices for long-term profits.
Recent DOGE purchases by whales could signal significant confidence in the coin’s future.
While positive sentiment towards DOGE remains high, Dogecoin whales are taking advantage of the price drop to increase their holdings and prepare for a recovery.
Dogecoin is currently worth $0.33, so a purchase of 270 million DOGE is worth $89 million.
Pattern Repeating Could Push DOGE to $5A graphic by crypto expert Trader Tardigrade shows a repeating Dogecoin price pattern.
This historical trend repetition could send Dogecoin soaring, the expert said.
The chart shows DOGE's rounded consolidation phases over multiple cycles as red curves and consistent bullish trends as green rising lines.
Dogecoin price spikes at the end of each consolidation period in the chart.