310,000,000 DOGE in 2 Days: Is Dogecoin Ready to Rally After 10% Drop?

TL;DR

• Despite DOGE’s price slump, the whales’ accumulation, the rising exchange outflows, and a nearly oversold RSI signal that the bull run is far from being over.
• Analysts remain optimistic, setting targets of $0.52 and even a new ATH of $5.

The Whales and the Other Bullish Factors

The biggest meme coin has experienced a substantial price pullback over the last 24 hours, retreating by around 10% and currently trading at $0.23 (per CoinGecko’s data).

However, the whales’ recent actions suggest that another uptrend could be just around the corner. The popular X user Ali Martinez revealed that large investors have purchased more than 310 million DOGE in the span of 48 hours, “signaling major accumulation after a brief profit-taking dip.”

The USD equivalent of the bought stash is roughly $73.5 million, whereas the whales now hold approximately 25.42 billion tokens. This represents 16.6% of Dogecoin’s circulating supply and is worth more than $6 billion. 

The accumulation from big investors leaves fewer coins available on the open market and might trigger a price rally if demand remains steady or increases. Furthermore, their actions could be mimicked by smaller players who may inject fresh capital into the ecosystem. 

The rising outflow of DOGE from exchanges should also be interpreted as a bullish element. CoinGlass’s data shows that investors have been moving their holdings from centralized platforms to self-custody solutions over the last several months, which reflects a reduced immediate selling pressure.

DOGE Exchange Netflow, Source: CoinGlass

Last but not least, Dogecoin’s Relative Strength Index (RSI) has dropped to nearly 30. Such a ratio typically indicates that the asset may be oversold and is due for a trend reversal. Conversely, anything above 70 means that the valuation has soared too rapidly in a short period and may be followed by a short-term correction.

DOGE RSI, Source: CryptoWaves

Price Predictions

Despite the dip, many Dogecoin proponents remain optimistic that the price is poised to reach fresh peaks soon. X user Galaxy assumed that the pullback has acted as a retest of the recent breakout, envisioning a new uptrend that could go as high as $0.52. 

Ultimae GL sees “a high probability” for DOGE to tap $0.35 next. To do so, the price must hold $0.21 as support and break above $0.28. 

CryptoELITES claimed the meme coin’s bull run is far from being over, setting an ambitious target of $5 as the next all-time high.