Dogecoin Whales Scoop Up 270 Million DOGE as the Market Crashes, Eyeing $5 ATH

While widespread liquidations would be expected from the recent DOGE price crash, Dogecoin whales have embraced the downturn as a prime opportunity.

As the recent Dogecoin price crash continues to unfold, an interesting dynamic has emerged. While one might expect widespread liquidations in such a scenario, Dogecoin whales have embraced the downturn as a prime opportunity. Viewing the dip as a chance for a low market entry, these whales are now purchasing Dogecoin in large volumes, with the latest transactions recording a 270 million buy.

According to crypto analyst Ali Martinez, who disclosed the development in an X (formerly Twitter) post on Tuesday, Dogecoin whales have bought a massive 270 million DOGE tokens in the last five days. This bulk purchase is part of a broader accumulation trend that has been unfolding on the Dogecoin network.

Since November, Martinez has recorded whales buying hundreds of millions of DOGE during the downtrend. On December 21, the analyst revealed that Dogecoin whales purchased 250 million DOGE during the recent market dip.

This bold move by Dogecoin whales is a common strategy among investors, who view such dips as a favorable entry point for buying tokens at a lower price in hopes of long-term gains, a behavior that is typically associated with more prominent players in the crypto market.

With the recent DOGE buying spree by whales, there seems to be a strong indication of confidence in the Coin’s future. Martinez has also expressed optimism in the meme coin’s price prospects, highlighting in a previous X post that DOGE could experience another parabolic rally to a $20 ATH.

While bullish sentiment for DOGE's price remains strong, Dogecoin whales are taking advantage of the current market conditions and declining prices to increase their holdings and prepare for a potential rally.

With the Dogecoin price currently trading at $0.33, the recent 270 million DOGE buy is valued at approximately $89 million at the current market rate.

Crypto analyst Trader Tardigrade has presented a chart that illustrates a recurring historical trend pattern in the Dogecoin price movement. The analyst suggests that a repetition of this historical trend could trigger a parabolic rally for Dogecoin.

The red curved lines in the chart highlight DOGE’s rounded consolidation phases in different cycles, while the green ascending lines underscore a steady bullish trend. Each consolidation period in the chart has led to a significant rally, where DOGE's price explodes at the end of the trend.

Based on this pattern, and considering that DOGE is now exiting its recent consolidation phase, the analyst predicts that a potential breakout could be on the horizon. Trader Tardigrade suggests that the breakout could trigger a price increase as high as $5, which would mark new all-time highs for DOGE.

At the time of writing, Dogecoin is trading at $0.33, with a 3.5% price increase in the last 24 hours. A surge to $5 would require the meme coin to record a staggering 1,415% increase from its current price.