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Dogecoin whales accumulate 708 million DOGE, aiming for 22% price gain

Dogecoin whales accumulate 708 million DOGE, aiming for 22% price gain

GrafaGrafa2024/09/10 00:35
By:Isaac Francis

Elon Musk's recent cryptic post on X (formerly Twitter) about "D.O.G.E" has led to a 9% surge in Dogecoin (CRYPTO:DOGE) price, attracting significant attention from large holders, commonly referred to as whales. 

Since Musk’s post on September 7, whale activity has increased, positioning Dogecoin for further potential gains. 

Large holders of Dogecoin have been ramping up their accumulation following the recent price surge. 

According to data from IntoTheBlock, Dogecoin’s netflow among large holders has spiked by 832% in the past seven days. 

This increase represents an accumulation of 708 million DOGE coins, valued at over $69 million at current market prices. 

Whales, who control more than 0.1% of DOGE's circulating supply, play a pivotal role in influencing price movements. 

A sharp increase in netflow indicates that these large holders are buying more coins, often prompting smaller investors to follow their lead. 

According to Santiment data, the sentiment around Dogecoin has shifted from negative to positive following Musk's post, with the current weighted sentiment sitting at 0.59. 

A positive sentiment reflects growing optimism, which is often seen as a bullish indicator for the asset. 

The positive sentiment has been supported by technical indicators like the Chaikin Money Flow (CMF) and On-Balance Volume (OBV). 

The CMF, currently at 0.08, suggests that buying pressure is outweighing selling pressure, indicating strong market momentum. 

Meanwhile, the rising OBV reflects strong demand for Dogecoin, which could further push its price higher. 

Market analysts suggest that if the buying momentum continues, Dogecoin could see an additional 22% increase, potentially reaching $0.11. 

However, they also caution that if whale accumulation slows and large holders begin selling for profit, the price could decline, potentially revisiting its August 5 low of $0.08. 

The next few days could be crucial in determining Dogecoin’s short-term price trajectory. 

At the time of writing, the Dogecoin (DOGE) price was $0.1039.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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