Dogecoin price marks a 10% rally in 24 hours as DOGE whales make a comeback

FXStreet
Updated
coverImg
Source: DepositPhotos

Dogecoin price had a fairly better 24 hours than most of the altcoins in the crypto market, but for its investors, this was one of the best days in a long while. 


The surge in DOGE price came at a time when one of Dogecoin’s biggest influencers, Elon Musk, also known as DOGEfather, accelerated the transition of Twitter to “X”.


Dogecoin price rises on the back of whales


Dogecoin price shot up by nearly 11% in a single day owing to external bullish cues as well as a sudden surge in performance from a key cohort of DOGE holders - the whales.


 At the time of writing, the meme coin could be seen trading at $0.082, breaching above the $0.080 mark for the first time in two months.

 

DOGE/USD 1-day chart

DOGE/USD 1-day chart, Source: TradingView.


A chunk of credit for this does go to Elon Musk, but most of it goes to the whales whose activity spiked in the same duration. Whale addresses, i.e., addresses that hold more than 0.1% of the entire circulating supply, observed total net flows of 1.02 billion DOGE worth a rather meager $83 million.

Dogecoin whale netflows

Dogecoin whale netflows, Source: IntoTheBlock.


However, considering the past two months, this is rather good news as it led to the surge in Dogecoin price. From here on, it is upon the DOGE holders to ensure that the rally sustains and that they do not lose their gains.


The reason why investors play an important role now is that, over the last couple of days, the lack of recovery led to many mid-term holders (addresses holding supply for more than a month and less than a year) losing their patience. 


The supply that moved around led to an increase in the short-term holders’ (addresses holding supply for less than a month) numbers by a solid 110k. 

Dogecoin addresses distribution by time 

Dogecoin addresses distribution by time, Source: IntoTheBlock.


Consequently, their percentage grew from 0.02% to 2.6% in the span of two weeks. These investors now pose a threat to Tuesday’s 11% rally as the meme coin remains susceptible to profit-taking from short-term holders.


Any selling could lead to a decline in Dogecoin price, potentially wiping out the recent gains. 


This could push investors back to their earlier phases of losses which could then lead to a panic selling which would be motivated by offsetting the losses. Hence, the meme coin’s investors now have another factor to consider before rising further.


* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Canada Unemployment Rate expected to edge higher in September Statistics Canada will release its Labour Force Survey on Friday, and markets are bracing for a mixed print.
Author  FXStreet
7 hours ago
Statistics Canada will release its Labour Force Survey on Friday, and markets are bracing for a mixed print.
placeholder
Gold hits pause on record run; but eyes eighth weekly gainGold prices edged lower on Friday as investors booked profits following the metal's surge past the $4,000-an-ounce mark earlier this week.
Author  Reuters
8 hours ago
Gold prices edged lower on Friday as investors booked profits following the metal's surge past the $4,000-an-ounce mark earlier this week.
placeholder
Yen Faces Largest Weekly Drop in a Year, Raising Prospects of Government InterventionOn Friday, the USD/JPY exchange rate hovered around 153, maintaining its highest level in eight months, with intraday peaks hitting 153.27.
Author  TradingKey
8 hours ago
On Friday, the USD/JPY exchange rate hovered around 153, maintaining its highest level in eight months, with intraday peaks hitting 153.27.
placeholder
USD/CAD Price Forecast: Targets six-month highs near 1.4050 as bullish bias prevailsUSD/CAD continues to gain ground for the fourth successive day, trading around 1.4030 during the early European hours on Friday.
Author  FXStreet
8 hours ago
USD/CAD continues to gain ground for the fourth successive day, trading around 1.4030 during the early European hours on Friday.
placeholder
Pound Sterling slides further against US Dollar despite dovish Fed remarksThe Pound Sterling (GBP) holds onto losses near its two-month low around 1.3280 against the US Dollar (USD) during the European trading session on Friday.
Author  FXStreet
9 hours ago
The Pound Sterling (GBP) holds onto losses near its two-month low around 1.3280 against the US Dollar (USD) during the European trading session on Friday.