While widespread liquidation is expected from the recent decline in DOGE's price, Dogecoin whales have seen this downturn as a great opportunity. Viewing the price drop as a chance to enter the market at a low price, these whales are now buying Dogecoin in large volumes, with the latest transactions recording 270 million purchases.

Dogecoin whales have amassed 270 million DOGE

The recent decline in Dogecoin's price has prompted large investors, commonly known as 'whales', to accumulate more tokens. Renowned cryptocurrency analyst Ali Martinez revealed in a post on X (formerly Twitter) on Tuesday that Dogecoin whales have purchased up to 270 million DOGE tokens in the past five days.

This massive purchase of 270 million DOGE is part of a broader accumulation trend observed across the meme coin's network. Since November, Martinez has noted whales purchasing hundreds of millions of DOGE during the downtrend.

On December 21, the analyst revealed that Dogecoin whales had bought 250 million DOGE during the recent market downturn. This bold move was made as investors viewed the drop in DOGE as a favorable entry point, a behavior often associated with prominent players buying tokens at lower prices in hopes of achieving long-term gains.

The recent DOGE purchase spree by whales may indicate strong confidence in the future of this cryptocurrency. Martinez has also expressed optimism about the price prospects of this meme coin, emphasizing in a previous post on X that DOGE could experience another parabolic surge to an ATH of $20.

While sentiment around DOGE's price remains strong, Dogecoin speculators are taking advantage of the current market conditions and the dip in price to increase their holdings and prepare for a potential price surge. With Dogecoin currently trading at $0.33, the recent purchase of 270 million DOGE is valued at approximately $89 million.

The repetition of the pattern could push DOGE's price to $5

Cryptocurrency analyst Trader Tardigrade presented a chart illustrating the historical repeating trend in Dogecoin's price volatility. The analyst suggests that the recurrence of this historical trend could trigger a parabolic price surge for Dogecoin.

The red curves in the chart highlight DOGE's rounded consolidation phases during various cycles, while the gradually increasing green lines emphasize a stable bullish trend. Each consolidation phase in the chart has led to a significant price increase, with Dogecoin's price surging at the end of the trend.

Based on the historical repeating pattern, DOGE appears to be breaking out of its recent consolidation phase, suggesting a potential breakout may be imminent. Trader Tardigrade has predicted that this breakout could trigger a price increase of up to $5, marking a new all-time high for DOGE.

At the time of writing, Dogecoin is trading at $0.33, reflecting a 3.5% increase over the past 24 hours. A price surge to $5 would require this meme coin to record an astonishing increase of 1,415% from its current price.

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