Dogecoin and XRP Bought by Whale Investors

In just a few short days, around $2.5 billion in Dogecoin and XRP has been accumulated by crypto whales. Whales are large-scale investors who buy

Two of the most popular altcoins, Dogecoin and XRP, have been bought over three days in large numbers. Now residing in the wallets of whale investors, it has been seen as a positive outcome for the pair.

In just a few short days, around $2.5 billion in Dogecoin and XRP has been accumulated by crypto whales. Whales are large-scale investors who buy substantial amounts and hold currencies for a long period of time. According to one trader on Twitter, the feeding frenzy began with XRP. This then went on to a two-day period where 470 million Dogecoin were purchased in a 48-hour period. Whales now hold $158.86 million in assets at the time of writing.

The same trader then went on to discuss the price of both assets, predicting they will have a huge rise in February. However, he also noted that over the last month, inflows have declined. They had moved from $134 billion to $68 billion. This is a common trend for the month of January, which typically sees a lull in investment after the rush of the pre-holiday months.

These accumulations by whales never occur out of the blue. When whales move to buy large currency stocks, it is typically a precursor to bigger price movements. This is because they can shape the market. Accumulation is seen as positive sentiment by them, whereas a large sell-off is viewed as the opposite. This movement by cryptowhales is believed to be a good signal, and the above-mentioned social media trader believes that Dogecoin could go as high as $0.66 at the start of February or just after.

The truth is that Dogecoin really is at a pivotal point in its development, regardless of any whale action. The Dogecoin price has been hanging around a level of $0.33 with little deviation. In December, it had quickly dropped to $0.27, which spooked many but also led to a quick reversal. Many social media investors tagged this as a precursor to a bullish comeback.

This $0.33 level is seen as a crucial point. Given the right support, if it holds above this level, it could begin a bull run and recover. The accumulation of the coin by whales does hold some hope, showing a recovery is probably incoming. However, it will need backing from other, more fluid investors and a fresh wave of confidence. The worry is that the breaking of this level then sees a rebound, which has been seen recently in the Bitcoin price.

There are several other factors that make Dogecoin a popular cryptocurrency for a bull run in 2025. It is the most popular of all the memecoins, has endorsements from celebrity billionaires, and has done very well in other crypto-positive seasons. However, the biggest signal of the cryptocurrency's potential lies in how it has done historically during the year of Bitcoin halving.

A bitcoin halving event is when the price for mining, and thus producing Bitcoin, is halved. This is an inflationary measure and reduces the supply. Taking part every four years, it is important as Bitcoin tends to spike in price both three months and six months afterwards. That is what happened this year, although the six-month spike was pushed back a little due to external factors.

Other cryptocurrencies and coins follow similar patterns when this occurs. In the 2020 event, Bitcoin began to pick up in the weeks that followed, reaching a high of 11k by August. Its real breakout occurred in December, and it had reached 30k by the start of the new year. Thus, the upturn would continue for some time, reaching a high at the end of the proceeding annum.

As Bitcoin rose, Dogecoin followed a very similar trajectory. It picked up after the Bitcoin halving event, then at the end of the year had a major price rise. By the start of the new year, it had risen 470% since the start of the event. This continued until the trend changed and cooled off halfway through the year.

The big question is whether Dogecoin will repeat the cycle this time. Last year's event took place in April, and it is worth noting that some of the spikes in the price of Bitcoin have been delayed. This will probably be reflected in Dogecoin's changes, if and when they happen. However, it has already risen 113% in value since the halving event. This suggests that if it followed the same leap in value it did after the 2020 halving, it would see a high of $48 before a decline.

This would lead to a stupendously high market cap for Dogecoin, which is unlikely. Therefore a more conservative estimate is probably welcome. Economic factors like rate cuts may impact this. However, with historical data behind it and the movements of whales, now could be the time to buy and hold.