Price rally underway?

TL;DR

Large investors recently bought billions of DOGE tokens, indicating bullish potential. Analysts predict a potential rally, with some setting a $1 target for the meme currency. DOGE Whales in motion

Dogecoin (DOGE) was one of many meme coins whose prices rose substantially in late September. Since then, however, it has lost momentum and is currently trading around $0.10 (according to data from Coingecko).

Price DOGE, Source: CoinGecko

One factor that indicates a renewed surge could be on the horizon is increased whale activity. Crypto intelligence platform IntoTheBlock revealed that large investors bought 2.07 billion DOGE tokens (worth more than $220 million at current prices) last week. The last time the whale hoarding reached this level was in January of this year.

If investors buy DOGE and keep their deposit unsold, the supply circulating in the market will decrease. Basic economic principles suggest that prices rise when combined with stable or growing demand.

The actions of the whales are closely monitored by smaller players. These accumulations can indicate confidence in the asset, causing a wave of purchases by the retail trader (thus an additional flow of capital into the ecosystem).

Another element that suggests the price of DOGE could be poised for an upward move is the increase in large transactions. The metric, which measures transactions over $100,000, is up 1% on a daily basis, showing a bullish sign.

DOGE predictions

Several Crypto X analysts believe that the leading meme currency could be preparing for a rally in the coming months. Ali Martínez, for example, claimed that the price chart had formed a pattern similar to the one observed years ago. He believes this could be a precursor to a 200% rally, a 60% pullback, and then a bull run.

Mikybull Crypto was also bullish and set $1 as a “minimum target” for this cycle. “It is currently preparing for the next explosive wave of rallies,” they added.

Those willing to check out additional Dogecoin bullish price predictions can check out our dedicated article here.

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