Dogecoin Whales Scoop Up 270 Million DOGE as Market Dip Provides Low Market Entry

Dogecoin price has experienced a downturn in recent times, prompting large-scale investors, also known as “whales,” to increase their token acquisitions. According to crypto analyst Ali Martinez, these whales have purchased a substantial 270 million DOGE tokens over the last five days.

This massive DOGE buy is part of a broader trend observed within the meme coin’s network. Since November, several instances of whales purchasing hundreds of millions of DOGE during downtrends have been recorded by Martinez.

On December 21, the analyst noted that Dogecoin whales had purchased 250 million DOGE during the recent market dip. This bold move is often attributed to investors viewing DOGE’s decline as a favorable entry point, a behavior commonly associated with larger players who buy tokens at a lower price in anticipation of long-term gains.

The recent flurry of DOGE buying activity by whales may be indicative of their strong conviction in the coin’s future. Notably, 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.

As bullish sentiment for DOGE’s price continues to gain traction, Dogecoin whales are taking advantage of the current market conditions and declining prices to bolster their holdings and prepare for a potential rally. With the Dogecoin price currently trading at $0.33, the recent 270 million DOGE buy is approximately valued at $89 million.

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

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

Based on the recurrent historical pattern, DOGE is currently appearing to be exiting its recent consolidation phase, which could indicate that a potential breakout may be on the horizon. According to Trader Tardigrade, this breakout could trigger a price increase as high as $5, setting new all-time highs for DOGE.

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