Dogecoin and XRP, two of the most popular altcoins, were purchased in large numbers over three days. Now residing in the wallets of whale investors, this was seen as a positive outcome for the pair. We discuss this in the article below.
In just a few days, around $2.5 billion in Dogecoin and XRP were accumulated by crypto whales. Whales are large-scale investors who purchase large amounts and hold currencies for a long period of time. According to a trader on Twitter, the feeding frenzy started with XRP. This then continued over a two-day period where 470 million Dogecoin was purchased over a 48-hour period. Whales now hold $158.86 million in assets as of this writing.
Dogecoin and XRP purchased by Whale Investors
The same trader then discussed the price of both assets, predicting that they would see a huge rise in February. However, he also noted that over the past month, entries have declined. They went from $134 billion to $68 billion. This is a common trend in January, which is generally characterized by a lull in investment after the rush of the months leading up to the holidays.
These accumulations by whales never happen out of the blue. When whales decide to buy large foreign exchange stocks, this is usually a harbinger of larger price movements. This is because they can shape the market. They view accumulation as a positive sentiment, while a selloff is viewed as the opposite. This movement in cryptowhales is considered a good signal, and the social media trader mentioned above believes that Dogecoin could reach $0.66 in early February or just after.
Will Dogecoin’s breakout hold?
The truth is that Dogecoin truly is at a pivotal moment in its development, regardless of any whale action. THE Dogecoin Price is around a level of $0.33 with little deviation. In December, it quickly fell to $0.27, which scared many but also led to a quick reversal. Many investors on social media called this a precursor to a bullish comeback.
This $0.33 level is considered a crucial point. With proper support, if it holds above this level, it could begin an uptrend and recover. Whales’ accumulation of coins provides some hope, showing that a recovery is likely coming. However, it will need the support of other more fluid investors and a new wave of confidence. The worry is that breaking this level will then lead to a rebound, as we saw recently in the price of Bitcoin.
Dogecoin and the Bitcoin Halving
There are several other factors that make Dogecoin a popular cryptocurrency for a bull run in 2025. It is the most popular of all memecoins, it has the support of famous billionairesand has done very well in other crypto-positive seasons. However, the biggest signal of the cryptocurrency’s potential lies in how it has performed historically during Bitcoin’s halving year.
A bitcoin halving event occurs when the price of mining, and therefore Bitcoin production, is cut in half. This is an inflationary measure that reduces supply. Participating every four years is important because the price of Bitcoin tends to increase three months and six months later. This is what happened this year, although the six-month peak was pushed back slightly due to external factors.
Other cryptocurrencies and coins follow similar models when this happens. During the 2020 event, Bitcoin began to recover in the weeks that followed, reaching a high of 11,000 in August. Its real breakout occurred in December and it had reached 30,000 by the start of the new year. The recovery will therefore continue for some time, reaching a peak at the end of the following year.
As Bitcoin rose, Dogecoin followed a very similar trajectory. It recovered after the Bitcoin halving and then saw a sharp price rally at the end of the year. At the start of the new year, it was up 470% since the event began. This continued until the trend changed and calmed down mid-year.
The big question is whether Dogecoin will repeat the cycle this time. Last year’s event took place in April and it is worth noting that some of the Bitcoin price increases were delayed. This will likely be reflected in Dogecoin changes, if and when they occur. However, its value has already increased by 113% since the halving event. This suggests that if it followed the same jump in value as after the 2020 halving, it would reach a high of $48 before a decline.
This would lead to an incredibly high market cap for Dogecoin, which is unlikely. A more conservative estimate would therefore probably be welcome. Economic factors like rate cuts may have an impact on this. However, with historical data and whale movements, now may be a good time to buy and hold.