The recent trend of cryptocurrency giants buying up shares means that the price of Dogecoin may soon rise again. Onchain data shows that these giants bought billions of Dogecoin last week, which may trigger a surge in the price of this hottest meme coin.

Dogecoin Price Could Rise as Whales Buy Over 2 Billion DOGE

The price of Dogecoin could surge as whales bought 2.07 billion Dogecoins last week. Data from market intelligence platform IntoTheBlock shows that this is the net flow of large holders over a seven-day period. The net flow refers to the difference between the amount these Dogecoin whales withdraw from exchanges and the amount they transfer to exchanges.

Interestingly, Bitcoinist reported that these Dogecoin whales purchased over 1 billion Dogecoin ($108 million) in less than 24 hours, further highlighting how quickly they have accumulated the number one meme coin. This accumulation trend by these whales is undoubtedly positive for the price of Dogecoin as it could spark a rally in the meme coin.

Ali Martinez, a cryptocurrency analyst, also said that a price rally is imminent considering that these whales want to get their hands on the most important meme coin. He said that the number of large transactions on the network continues to rise, which shows that institutional players and DOGE whales are preparing for a potential upward move.

Given that Dogecoin has so far lagged the entire cryptocurrency market, including other memecoins, these investors will be hoping that the next price recovery for Dogecoin will kick-start a bull run for memecoins. While Dogecoin is up over 21% year to date (YTD), this pales in comparison to the price gains of other leading memecoins such as Pepe (PEPE) and Dogwifhat (WIF).

Other factors that could affect price recovery

External factors such as macroeconomics may affect the recovery of Dogecoin's price. Bitcoinist reported that Dogecoin's price has recently plummeted due to market uncertainty caused by the recent US jobs report, geopolitical tensions, and the upcoming US presidential election. Therefore, these factors may hinder the rise of Dogecoin's price until investors are confident about how these events will develop.

On the macro side, the U.S. Consumer Price Index (CPI) inflation data, scheduled for release on October 10, will guide these investors on whether to allocate more funds to risky assets such as Dogecoin. The data may determine whether the Federal Reserve will cut interest rates by 50 basis points (bps) at the November FOMC meeting.

A 50 basis point rate cut brings positive prospects for Dogecoin. This will increase investors’ risk appetite and strengthen their confidence in investing in crypto assets such as DOGE.

At the time of writing, Dogecoin is trading at around $0.1092, up nearly 2% in the past 24 hours, according to CoinMarketCap.