Dogecoin whales continue their hoarding frenzy, purchasing large amounts of DOGE tokens during the recent price drop.
Notable market analyst Ali Martinez was the first to draw public attention to the latest bullish trend, indicating optimism among these whale addresses.
Dogecoin whales are hoarding
Martinez cited on-chain data from market analysis resource Santiment, revealing that during the latest bearish phase that began on Monday, whales holding 10 million to 100 million Dogecoins accumulated approximately 210 million tokens.
Data confirms that the 210 million tokens they purchased are worth over 88 million dollars at the current price of 0.42 dollars. According to Santiment's data, these whales held a total of 21.64 billion Dogecoins before the recent price drop.
After the adjustment phase, the holdings of these addresses have now soared to the current 21.85 billion, adding 210 million Dogecoins in four days.
Further data review shows that the accumulation behavior of whales is even more impressive over a longer timeframe. Notably, by the end of October, the number of tokens held by whales had reached 18.55 billion. Now, the number of tokens held by whales has risen to 21.64 billion, meaning that over the course of two months, their holdings increased by 3.3 billion tokens, valued at 1.39 billion dollars.
The recent surge in accumulation during the price drop indicates their interest in buying the dip. In contrast, Dogecoin experienced a massive price drop of 11.22% on December 9, marking the largest intraday decline in five months. The last time Dogecoin saw a similar drop was on July 4, when the market was generally sluggish.
DOGE price rebounds after a drop
It is worth noting that the recent drop occurred after the cryptocurrency market entered a broader adjustment phase, with Bitcoin (BTC) crashing from a high of 101,000 dollars being the main reason. By December 10, BTC had fallen to the low end of 90,000 dollars, affecting altcoins like Dogecoin and triggering a series of liquidations.
DOGE eventually fell to 0.3653 dollars, the lowest price in over two weeks, before recovering slightly. However, although the pullback triggered massive liquidations of long positions and sparked panic selling, these whales seized the opportunity to buy the dip.
So far, this decision seems to have paid off, as Dogecoin has rebounded nearly 15% from its low of 0.3653 dollars. Market analyst Scofield confirmed that during the recent crash, Dogecoin had previously fallen below the downtrend line that had been serving as support since early November.
However, with the beginning of the rebound movement, the meme token has now recovered above the trend line. Meanwhile, another market analyst, Cryptomist, reminded people to pay attention to the ascending triangle that DOGE recently broke below. He stated that the rebound within the triangle could lay the groundwork for a return to all-time highs (ATH).
