Large investors in Dogecoin, often referred to as “whales,” have increased their holdings over the past week. On-chain data suggests that the leading coin is undervalued, presenting a buying opportunity for those looking to trade against current market trends.
With the increasing accumulation of whales, DOGE could be poised for a near-term rebound. This analysis explores why.
Dogecoin whales are back in the game
Last week, Dogecoin Whales holding between 10,000,000 and 100,000,000 DOGE have accumulated 410 million DOGE, valued at $140 million. Currently, this group of whales collectively holds 22.54 billion DOGE – their highest holding level since February 2016.
When large holders of an asset increase their coin accumulation, it means they have confidence in its near-term potential. This purchasing activity reduces the circulating supply, potentially creating a shortage and driving up prices. Additionally, such whale accumulation attracts retail investors, amplifying demand and supporting an upward price trend.
The reason behind the recent spike in the DOGE whale the accumulation is clear. Readings of its negative market value to realized value (MVRV) ratio suggest that the room itself is currently undervalued, presenting an excellent buying opportunity for those looking to take advantage of the market trend.
As of this writing, the token’s one-day MVRV ratio is -1.76. This metric measures whether an asset is undervalued or overvalued.
Negative MVRV ratios like this historically represent a buy signal. They indicate that the asset is trading below its historical acquisition cost and could experience a rebound. Therefore, they provide a good buying opportunity for those looking to “buy the dip” and sell for profit.
DOGE Price Prediction: Accumulation Could Power Coin to $0.48
On the daily chart, DOGE’s Chaikin Money Flow (CMF) reflects the growing accumulation. At the time of writing, the momentum indicator is in an upward trend at 0.03.
When an asset’s CMF is positive, it indicates buying pressure in the market, with more money flowing into the asset than flowing out. This suggests strong investor confidence and is a bullish signal for price action.
Therefore, if DOGE whales continue their accumulation, it could push the price of the meme coin to $0.48. On the other hand, if sales resume, its price could fall to $0.29.
Disclaimer
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