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Dogecoin Whales Invest Another $30M as PEPE, WIF drop 30% -Will DOGE Price React?

By:
Ibrahim Ajibade
Updated: Apr 13, 2024, 20:46 GMT+00:00

Key Points:

  • Dogecoin (DOGE) price continues to hold firmly above the $0.14 mark on April 13, as mega-cap memecoins grapple with double-digit losses.
  • Dogecoin whales have acquired 180 million DOGE between April 1 to April 13 2024
  • With Dogecoin whales aggressively buying the dip, technical indicators suggest DOGE could hold the $0.15 support.
Dogecoin (DOGE) price Forecast

In this article:

Dogecoin (DOGE) price continues to hold above the critical $0.14 support territory, while other mega cap memecoins including PEPE, Dogewifhat (WIF) have recorded losses in excess of 30%. 

An in-depth analysis of the Dogecoin on-chain data shows how a prolonged buying pressure from whale investors have propped up DOGE prices in the recent weeks.

Will DOGE bulls capitalize to stage an early rebound above $0.20 or will prices tumble below $0.14 in the days ahead?

Dogecoin is Outperforming PEPE, WIF Amid Memecoin Market Dip

Megacap memecoins felt the heat during the crypto market downturn that saw the global market capitalization shrink by more than $170 billion on April 12.

But interestingly, Dogecoin price has posted a more resilient performance, relative to its rival meme tokens.

Dogecoin (DOGE), PEPE, Dogwifhat (WIF) Price Action | April 2024 | Source: TradingView
Dogecoin (DOGE), PEPE, Dogwifhat (WIF) Price Action | April 2024 | Source: TradingView

At the time of writing on April 13, Ethereum-based PEPE and Solana’s Dogewifhat (WIF) have slid by 31% and 39.4% respectively in the last 72-hours.

But remarkably, Dogecoin price has held up stronger amid the market downturn, registering slighly less than 22% losses over the same trading period.

Digging deeper, on-chain data trends suggest that crypto whales buying DOGE behind-the-scenes could be propping prices.

Whales Investors Have Bought 180M DOGE in April 2024

Prior to the frenetic market crash on April 12, triggered by fears of escalating tensions in the Middle East, Dogecoin price had opened trading for the month at a yearly-peak of $0.22.

Intense buying pressure from crypto whales was pivotal to the DOGE rally in late March. Notably, recent on-chain trends suggest that despite the market downturn on Friday, the bullish whales have not wavered.

Santiment chart below tracks the real-time changes in the cumulative balances of wallets with atleast 1 million DOGE (~$160,000).

Dogecoin Whales Wallet Balances | Source: Santiment
Dogecoin Whales Wallet Balances | Source: Santiment

Dogecoin whales held a total balance of 126.67 billion DOGE at the close of March 31 as seen in the Santiment chart above. But that figure has now grown to 126.84 billion at the time of publication on April 13.

This implies that Dogecoin whales have acquired 180 million DOGE, worth approximately $30 million between April 1 and April 13, despite prices falling 27% during that period.

When whale investors begin to acquire more of an asset during a market wide correction, strategic investors could consider it a bullish signal for two reasons

  • Dogecoin bulls in control: Dogecoin whales hold over 126.84 billion DOGE. With such a substantial share of total supply, their decision to not only HODL but to invest more in DOGE amid the market downturn, has evidently, held stabilize DOGE prices relative to rival meme tokens.

More so, the Dogecoin whales buying activity not only absorbs a large volume of sell-side pressure but can also trigger a reversal in market sentiment. If it persists, other investors could take a cue and regain some confidence, leading to an early rebound or at least a dampening of the current downward trend.

Dogecoin Price Forecast: DOGE to Hold $0.14 Support

Dogecoin price looks set to defend the $0.15 support, largely thanks to crypto whales’ $30 million investment in April 2024 absorbing a large volume of sell-side pressure.

IntoTheBlock’s global in/out of the money data also affirms this stance. It shows that 681,720 addresses have acquired 33.2 billion DOGE at the maximum price of $0.14.

Dogecoin Price Forecast| GIOM data | Source: IntoTheBlock
Dogecoin Price Forecast| GIOM data | Source: IntoTheBlock

Given that this $0.14 price range has proven to be the largest accumulation zone in the past, DOGE could witness a demand surge, preventing prices from falling lower.

And if the resulting buying pressure coincides with an improvement in the broead crypto market sentiment, an instant Dogecoin price rebound toward $0.20 could be on the cards. But in this scenario, the bulls face a daunting challenge at flipping the $0.17 territory.

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

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