Markets
Whales buy $130 million DOGE at a 32% increase.
Dogecoin price hit a 24-hour time peak of $0.16 on Thursday, May 16, bringing DOGE’s growth performance for the month to 32%, with recent activity among whale investors likely to bring about another advantage.
DOGE Rises 32% in May Amid Bullish Catalysts from Tesla and Gamestop
Dogecoin price has struggled to find momentum in the first half of May 2024. However, this week, bullish traders appear to have taken control of the DOGE markets. At the time of writing, DOGE is trading at $0.16, up 32% for the month.
Dogecoin’s positive price performance in May could be primarily attributed to the emerging bullish factors surrounding Elon Musk’s Tesla and the Gamestop rally resumed.
News about Tesla triggered the first wave of the Dogecoin price rally. In particular, Crypto Rand, a leading figure in the crypto community, called attention to Tesla’s acceptance of DOGE as a payment method for its products. The media personality revealed that this is a recent move, but it actually happened two years ago, like The Crypto Basic confirmed.
However, in the chaos triggered by this disclosure, Dogecoin price rose to a 20-day high of $0.17 on May 7. But, by May 12, the bulls had succumbed to a 15% correction as the broader cryptocurrency markets slipped into a week-long lull.
Interestingly, this week, DOGE’s latest price breakout coincided with the resurgent Gamestop saga which has led to parallel bullish retail activity in the cryptomemecoin markets.
Whale investors acquired 820 million DOGE in May 2024
At the time of writing, DOGE has rebounded above 0.15%, erasing last week’s losses. While the retail hype surrounding Gamestop has dominated crypto media headlines, on-chain data shows that whale investors have been aping the Dogecoin rally behind the scenes.
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The Santiment chart below presents cumulative balances held in whale wallets with a minimum balance of 1 million DOGE (~$150,000). This metric essentially provides information about the real-time fluctuations in the buying and selling trend of whale investors.
As seen above, as of May 1, 2024, whales held a total of 57.06 billion DOGE. At the time of publication on May 16, these whales’ holdings have skyrocketed to 57.9 billion DOGE.
This implies that the crypto whales have acquired 822 million DOGE since the beginning of May 2024. When valued at current prices, the whales have invested another $130 million, capitalizing on tailwinds from Dogecoin’s recent tie-ups with Tesla and Gamestop.
When whales make such large acquisitions during a rally, they often intensify the upward price movement for two main reasons. First, the positive sentiment surrounding bull whale activity may encourage potential buyers on the sidelines to join the fray.
Furthermore, large-volume purchases by these whales add significant liquidity to the markets, allowing early profiteers to exit without driving Dogecoin prices down.
Dogecoin Price Forecast: Another Hurdle Before Breakout of $0.20
Gamestop’s resurgent rally and Whales’ investment of $130 million in May 2024 are key bullish catalysts that could combine to push Dogecoin price above $0.20 in the days to come.
However, the upper-band Bollinger Band technical indicator suggests that DOGE bulls now face a major resistance cluster at the $0.17 level.
However, if the whales maintain the buying trend, the Dogecoin price rally could gain momentum for another rally above the $0.20 mark.
On the other hand, if the market turns around, the bulls will likely build a solid buying wall of support at the $0.13 level.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to do thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
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