Dogecoin (DOGE) Whales Accumulate 1.08B Tokens, Signaling Growing Investor Confidence

Top meme cryptocurrency Dogecoin (DOGE) has experienced minor short-term volatility, with on-chain data suggesting growing investor confidence in the token.

Dogecoin (DOGE) price experienced minor short-term volatility on January 3, with on-chain data suggesting growing investor confidence in the meme cryptocurrency.

Specifically, Dogecoin whales—entities holding large amounts of the token—accumulated over 1.08 billion DOGE within 24 hours, according to data highlighted by prominent on-chain cryptocurrency analyst Ali Martinez in an X post on January 3.

This significant accumulation coincided with a period when DOGE witnessed a price decline, indicating that major investors were capitalizing on the dip. Such whale accumulation often precedes a price recovery, pointing to strong confidence from investors with substantial holdings.

DOGE price prediction

Regarding Dogecoin’s next price action, Finbold turned to OpenAI’s artificial intelligence (AI) tool ChatGPT-4o for insights on how the token will likely trade in light of the current on-chain developments. The AI tool provided three possible scenarios.

In a bullish case, where ChatGPT predicted that Dogecoin accumulation is substantial, market sentiment could shift positively. The DOGE price is projected to reach the $0.40 to $0.45 range within a few weeks in such a case.

In a balanced situation, where the asset makes minimal moves with mixed market signals of balanced buying and selling pressures, the AI tool estimates that DOGE could trade between $0.28 and $0.32.

Meanwhile, in a bearish scenario, where Dogecoin experiences sustained profit-taking, especially from whales, alongside possible bearish market sentiment, DOGE could drop to $0.27.

Dogecoin’s technical setup

Regarding Dogecoin’s technical setup, analysis by pseudonymous cryptocurrency market analyst CryptoBullet in an X post on January 4 highlighted a possible path to the elusive $1.

According to the analysis, Dogecoin recently retested the lower boundary of a well-defined ascending channel. This retest, marked by a bounce off the channel’s support, signals potential bullish momentum.

The current price level of around $0.38 is pivotal, as Dogecoin remains within this ascending channel, which has guided its upward trend since 2021.

The channel’s lower boundary, around $0.26, acted as a support level during the recent retest, while the upper boundary, near $0.54, serves as a key resistance level. If Dogecoin can sustain its upward movement within this formation, the analyst noted the door towards $1 will be open.

On the other hand, an analysis by Martinez highlighted the possibility that Dogecoin could experience a 1,000% spike if historical bull cycles are replicated. In this instance, past bull runs of 2017 and 2021 saw Dogecoin surge by 1,000% within 27 to 42 days.

Therefore, this consistent pattern raises the possibility of a similar surge in the current market.

Notably, Dogecoin has benefited from the recent crypto market rally, partly inspired by the election of Donald Trump, who is viewed as bullish for digital assets.

At the same time, Dogecoin investors will be watching the influence of its top promoter, Elon Musk, and his potential role in the upcoming Trump administration, especially under the Department of Government Efficiency (D.O.G.E.).

To this end, Alex Thorn from blockchain firm Galaxy Digital predicted that Dogecoin will surpass $1 and reach a $100 billion market cap in 2025. The firm suggested that Dogecoin’s performance might be influenced by D.O.G.E. operations, potentially impacting its market capitalization.

“Dogecoin will finally hit $1, with the world’s largest and oldest memecoin touching a $100bn market cap. However, the Dogecoin market cap will be eclipsed by the Department of Government Efficiency, which will identify and successfully enact cuts in amounts exceeding Dogecoin’s 2025 high-water mark market cap,” Alex Thorn said.

Dogecoin price analysis

By press time, Dogecoin was trading at $0.38, having rallied by almost 0.5% in the last 24 hours. On the weekly chart, DOGE has rallied by a massive 20%.

Dogecoin’s immediate support levels are around $0.26, with resistance near $0.54. However, any significant price movement depends largely on the general market sentiment.