Dogecoin has reversed over 50% of its gains earlier in the week as investors look to be taking profits. DOGE whales, on the other hand, are going against the profit taking trend to increase their holdings. This whale accumulation was noted on social media platform X by crypto analyst Ali Martinez. According to Santiment data shared by the analyst, some DOGE whales have bought up over 60 million DOGE in the last 24 hours. This on-chain activity has fueled optimism among DOGE holders as a revelation of continued bullish momentum.

Dogecoin Whale Analysis

Dogecoin has witnessed a buying activity surge from market participants (whales and retail traders) since the beginning of the week. This led to a corresponding price surge which saw it peak at $0.1269. However, while the price has since reversed and shed about 6% from this recent peak, buying activity continues to linger on. This time, the purchases can be linked to some DOGE whales who are still hot on the buying activity.

Based on Santiment’s insights revealed by the leading market analyst Ali Martinez, some whales have bought over 60 million DOGE tokens in the last 24 hours. When speaking of whales, this refers to addresses holding between 1 million and 10 million DOGE coins. This buying activity has seen their collective holdings increase to 10.5 billion DOGE tokens, the highest so far this year.

#Dogecoin whales have bought up over 60 million $DOGE in the last 24 hours! pic.twitter.com/53Z9gi0eFt

— Ali (@ali_charts) July 18, 2024

Similarly, Santiment chart data shows that addresses holding between 10 million and 100 million DOGE also bought around 160 million DOGE in 48 hours, which shows a prevailing bullish sentiment across all classes of large holders.

Bullish For DOGE Sentiment

Whale activity is known to have both short and long-term effects on the price of cryptocurrencies. As mentioned earlier, the continued accumulation suggests the cryptocurrency is still reeling in bullish sentiment from large holders.

At the time of writing, Dogecoin is trading at $0.1192 and is down by 2% in the past 24 hours. This suggests that the buying pressure from some large holders is yet to be factored into the price of DOGE. However, a continued accumulation could see DOGE resuming a larger uptrend and overperform the rest of the market.

With new money pouring in and whales making big buys, the short-term outlook for Dogecoin looks positive. DOGE is currently trading around a major order block at $0.117, and it could either bounce up from here or break below to the downside. In the case of a bounce upwards, the next resistance is at $0.1266, which DOGE has failed to break through five times in the past 30 days.