According to cryptocurrency analytics firm IntoTheBlock, Dogecoin (DOGE) whales have been hoarding the meme coin over the past few days. According to the platform, whale inflows increased from 46.25 million to 493.15 million DOGE on September 11. This increase is about 970%.

Whale accumulation and market impact

IntoTheBlock data shows that 62% of DOGE tokens are held by large holders, and once whales accumulate and sell, the price will fluctuate. The platform also pointed out that 70% of DOGE holders are in a profitable state, 26% are in a loss state, and 3% are flat.

Why are DOGE whales buying?

The latest accumulation trend could be due to Elon Musk’s recent comments about himself being the “father of Dogecoin.” Musk is an avid fan of Dogecoin (DOGE) and has never stopped supporting the meme coin. Musk’s comments often lead to occasional spikes in the asset’s price, regardless of market sentiment.

Market Status and Future Forecast

Dogecoin whales may also be anticipating a rally in the cryptocurrency market following news that the U.S. inflation rate was lower than expected at 2.5%. The Federal Reserve also announced a rate cut starting this month.

Both scenarios could spark a rally in the cryptocurrency market. Rate cuts typically lead to increased inflows into risky assets such as cryptocurrencies.

Will the original Memecoin bounce back?

CoinCodex analysts say that the price of Dogecoin (DOGE) may consolidate in the next few days before falling to $0.087 by the end of the month. A drop from current levels to $0.087 would mean a drop of about 13.86%.

Changelly researchers also paint a similar picture for DOGE. The platform expects the asset’s price to consolidate in the coming days before facing a correction. Changelly predicts that DOGE will drop to $0.088 by the end of the month.