In recent weeks, Dogecoin, the popular meme-based cryptocurrency, has witnessed significant price movements and attracted the attention of whales and investors. Notably, a breakout attempt of a resistance level and the formation of a descending triangle pattern have piqued interest in the crypto community.
Recent data from Intotheblock shows that whales have bought around 3 billion Dogecoins worth approximately $225 million over the last three weeks. It has also been observed that more than 20% of Dogecoin surged in the past three weeks, going from $0.063 to $0.077. Currently, there is a breakout of a resistance level on a daily time frame, but it has not closed above this level yet. Along with this, Dogecoin is also trading above the 200MA, which is a positive sign for bullish movement. Whales and investors are showing their interest in adding Dogecoin to their wallets.
These significant purchases of Dogecoin by whales were observed and tweeted by an individual named Ali on Twitter.
Previously, there was a substantial price movement of around 23,200% when Dogecoin broke out of the descending triangle pattern on a weekly time frame. As of now, there is a similar formation of a descending triangle pattern, which might attract the whales, considering the previous move of Dogecoin. Currently, Dogecoin is trading in a narrow zone of the descending triangle pattern. A breakout of the pattern may result in a significant bullish movement in the coming days.
Presently, Dogecoin is sitting on top of stable support between $0.075 and $0.077, where 43.17k addresses bought 1.52 billion Doge. However, the resistance between $0.081 and $0.093 is more significant, with 142.3k addresses previously purchasing 10.18 billion Doge according to the data from IntotheBlock.
In a recent report by Todayq News, Dogecoin (DOGE) surged by 5% despite a broader decline in the cryptocurrency market, thanks to Elon Musk’s Twitter activity. Musk hinted at Dogecoin’s potential role in his AI-focused group of companies called X Corp, particularly in the rebranded company X.AI. By adding Dogecoin’s logo to his Twitter bio, Musk sparked speculation about the meme coin’s involvement. This news might attract more investors and crypto users to Dogecoin.
Along with these significant Dogecoin purchases by whales, it is also observed that more than 730 million Dogecoins worth around $51 million were transferred from one wallet to another on July 21 and 22, 2023, in four different transactions.
The first transaction involved around 117 million Dogecoins transferred from Robinhood to an unknown wallet, and another similar transfer of around 78 million Dogecoins from Robinhood to an unknown wallet took place on July 21, 2023. After a few hours of these transfers, the third transfer took place, where approximately 85 million Dogecoins were transferred from an unknown wallet to a Binance wallet. Lastly, a significant amount of Dogecoins, around 450 million, was transferred from an unknown wallet to a Robinhood wallet on July 22, 2023.
The purpose of these Dogecoin transfers from one wallet to another is still not defined. There might be a possibility that the previous wallet might not have been secure, or it might have been used for any payment, or possibly used for staking purposes into different staking pools as Dogecoin works on a proof-of-stake model, making the network more secure and resilient against attackers.