Dogecoin’s frequent large-value transactions – can it be Dogecoin’s savior?
In September, Dogecoin rose strongly by more than 12%. However, in October, its gains slowed down. Recently, Dogecoin has been under downward pressure for several consecutive days, which also reflects the weakness of the entire cryptocurrency market.
But the latest on-chain data seems to indicate that the price of Dogecoin will not be depressed for a long time. Large-scale meme coin investors are gradually increasing, and their market participation may have a profound impact on the pricing of Dogecoin.
Are Dogecoin whales gearing up for an upcoming bull run?
Well-known cryptocurrency analyst Ali Martinez shared his on-chain observations on recent whale and other major investment activities on the X platform. IntoTheBlock’s large transaction indicator measures token transfers worth over $100,000.
Given the sheer size of these trades, this indicator focuses on the dynamics of whales and institutional investors. Whales generally refer to individuals or organizations that hold large amounts of cryptocurrency and can significantly influence market movements.
Martinez noted that Dogecoin has seen an increase in the number of large transactions. Increased trading volume sometimes signals institutional investors and whales to accumulate or diversify assets ahead of a market trend reversal. Please note, however, that IntoTheBlock’s Large Trade Indicator does not show the specific direction of a trade.
According to the latest data, Dogecoin whales (holding at least $10 million) acquired nearly 1 billion DOGE (worth over $108 million) in one day. This shows that important investors are actively accumulating Dogecoin, but it also confuses other investors.
However, the entry of institutional investors and whales may breathe new life into Dogecoin and increase market confidence in its long-term prospects. This could lead to increased market volatility and drive prices significantly higher.
Dogecoin price dynamics
As of now, the price of Dogecoin is $0.1088, down 0.6% in 24 hours. According to data from CoinMarketcap, DOGE fell by nearly 16% in the last week.
Although the rally in meme coins has slowed, investors should still pay close attention to positive changes on the chain. Historically, October is usually a better month for Dogecoin.