Dogecoin Whales Buy 480M DOGE in 48 Hours, What’s Next

Generally, You should be aware of the recent surge in Dogecoin’s price. Normally, traders are keeping a close eye on the $0.20 resistance level. Because, You see, this level has historically been a major obstacle for the cryptocurrency. Now, I am going to tell you that Dogecoin (DOGE) is back in the spotlight as whales have purchased 480 million tokens in just 48 hours. Usually, the price of Dogecoin is very volatile, but with the price at $0.14 and network activity rising, traders are watching the $0.20 resistance level for the next move.

Dogecoin Whales Buy 480 Million Tokens in 48 Hours

Obviously, the purchase of 480 million tokens by whales is a significant event. Often, such large purchases can have a major impact on the price of a cryptocurrency. Between December 2 and December 4, large holders increased their DOGE balance by approximately 480 million tokens. Essentially, this data comes from Santiment and was shared by analyst Ali Martinez, indicating a substantial increase in whale holdings from about 28 billion to 28.48 billion DOGE in just two days.

Whale Accumulation

Apparently, the accumulation of Dogecoin by whales is a significant trend. Typically, such accumulation can lead to a increase in the price of the cryptocurrency. Generally, large holders have been increasing their DOGE balance, which is a good sign for the cryptocurrency. This data comes from Santiment and was shared by analyst Ali Martinez, indicating a substantial increase in whale holdings from about 28 billion to 28.48 billion DOGE in just two days.

Price Impact

Usually, the accumulation of a cryptocurrency by whales can have a positive impact on its price. Now, the price of Dogecoin has rebounded from $0.14 to $0.15, which is a good sign. Despite this recent activity, DOGE is down 2 % over the past 24 hours and 2 % over the past week. Normally, the timing of the accumulation suggests that large players may have stepped in near a local bottom.

Technical Signals

Generally, technical signals are very important for traders. Essentially, analysts have noted that the TD Sequential setup has printed a potential buy signal, which has historically marked turning points during correction phases. Additionally, data from Glassnode shows that around 11.72 billion DOGE were acquired between $0.2028 and $0.2044, creating a strong resistance zone at $0.20. Many wallets that purchased DOGE near $0.20 are now holding at a loss, which could increase sell pressure if the price returns to that range.

Network Activity

Obviously, network activity is a key indicator of the health of a cryptocurrency. Now, network activity for Dogecoin has also surged, with 71,589 active addresses recorded—the highest since September. This increase in network usage coincides with recent filings from 21Shares and Grayscale, who have advanced proposals for spot DOGE ETFs, raising hopes for broader market exposure.

Market Disconnect

Generally, a disconnect between user engagement and market demand can be a problem for a cryptocurrency. Despite the surge in network activity, whale inflows have remained low since November, and ETF-related interest has not yet translated into price strength. The contrast between increasing address activity and falling prices points to a disconnect between user engagement and market demand.

Long-Term Chart Outlook

Essentially, the long-term chart of Dogecoin looks promising. Looking at the long-term chart shared by Trader Tardigrade, Dogecoin appears to be following a familiar path. The asset has been building a series of higher lows above a trendline that resembles its structure before the 2021 rally. That earlier phase also saw extended consolidation before a breakout. Based on this chart, the coin may be entering a more volatile period.

Summary

Normally, a summary of the key points is helpful. In summary, Dogecoin has seen a significant increase in whale activity and network usage, with large holders accumulating 480 million tokens in just 48 hours. While the price has rebounded slightly, it remains down over the past week. Traders are watching the $0.20 resistance level closely, as it could determine the next market move. With network activity at a three-month high and potential ETF filings on the horizon, Dogecoin is once again in the spotlight. However, the disconnect between user engagement and market demand suggests that caution may be warranted as the market watches for further developments.