In the midst of memecoins gaining popularity, Dogecoin (DOGE) has been experiencing a period of trading within a specific range. However, there has been a recent resurgence in the accumulation of DOGE by large holders, with addresses holding between 100 million and 1 billion DOGE adding over 200 million tokens to their portfolios since May 30.
Looking back at historical data, this current price correction is in line with previous patterns exhibited by Dogecoin before experiencing a significant bull run. Despite a decrease in accumulation, it does not necessarily indicate a bearish trend for the token.
Renowned analyst ALI shared a Santiment chart that showcases the renewed accumulation of Dogecoin by whales. The chart displays the number of addresses holding between 100 million and 1 billion DOGE, which have collectively increased their holdings by over 200 million tokens since May 30. These whales currently control DOGE worth more than $31 billion, a considerable portion of the total tokens in circulation. Despite this accumulation, the price of DOGE has remained relatively stable, indicating that the token may be preparing for a substantial movement in the near future.
The analyst suggests that the current price correction aligns with Dogecoin’s characteristic behavior before embarking on a massive bull run, as seen in its performance in 2017 and 2021. In 2017, DOGE broke out of a descending triangle pattern, experienced a 40% retracement, and then went on a bull run that exceeded 900%. Similarly, in 2021, the token underwent a retracement of over 50%, which ultimately led to a remarkable rally of more than 12,000%.
Overall, while the trading volume for Dogecoin has decreased and Pepe currently holds the title of the most traded meme coin, market analysts anticipate a change in dynamics for DOGE’s price as it nears the end of its accumulation phase. The actions of whale investors have historically had a significant impact on Dogecoin’s long-term price, with increased accumulation indicating a higher likelihood of an upward trend.
