Dogecoin's Soaring Journey: Whales Invest $230 Million
Date: 2023-11-21 Author: Dima Zakharov Categories: BUSINESS
Crypto Whales Invest $230 Million in Dogecoin
On November 17th, Dogecoin experienced an exceptionally high demand on both the spot and futures markets, propelling its price to $0.09. Let's explore the significant events that unfolded and what the future might hold for this meme-inspired cryptocurrency.
Whales Drive DOGE's Rally
Just two weeks after the annual celebration of DOGE Day, where we previously noted a price surge, Dogecoin embarked on another rally, climbing from $0.067 to $0.09. On-chain data reveals the pivotal role played by a group of whales holding balances ranging from 10 million to 1 billion coins. According to Santiment's chart, these whales acquired an additional 2.75 billion DOGE between November 2nd and 17th, amounting to approximately $230 million at the current price of $0.09.
Increasing User Adoption
The rising number of transactions by new users appears to be another crucial factor influencing Dogecoin's price surge. IntoTheBlock data shows that this month, the new user coefficient for Dogecoin reached a 4-month high at 58.16.
Futures Open Interest Surges by 30%
Despite the positive spot market performance, recent developments in the derivatives market are sending caution signals. Coinglass tracker indicates a roughly 30% increase in Dogecoin's open interest over the last 24 hours. As illustrated in the graph, the metric rose from $366 million to a 4-month peak of $474 million between November 16th and 17th.
Normally, a rise in open interest is considered a bullish signal, indicating increased investor participation. However, a 30% surge during a rally suggests riskier trader behavior, historically associated with local price peaks. If history repeats itself, we might see DOGE entering a correction phase in the coming days.
DOGE Price Forecast: Key Resistance at $0.10
The heightened trading activity by whales and the increased demand from new users could contribute to further price growth for DOGE. However, to sustain the momentum, Dogecoin must overcome resistance from 725,320 addresses that acquired 17.97 billion tokens at an average price of $0.10. Successfully surpassing this level could propel the meme coin towards the $0.20 mark.
On the flip side, bears will aim to provoke a drop to $0.06. The 405,850 addresses purchasing 42.20 billion tokens at the maximum price of $0.071 may provide some support. However, considering the risky behavior of futures traders, a downturn towards $0.07 could trigger mass liquidation, leading to a more profound correction.
