Dogecoin Dips, But Smart Money is Accumulating—Here’s Why

6 months ago 23

February 8, 2025 by Kashif Saleem

Whales accumulated over 100 million Dogecoins in 24 hours, signaling strong buying interest.
Dogecoin’s 30-day inflow surged 323.86%, while 90-day inflows skyrocketed 3,722.46%.
A rounding bottom pattern suggests a potential breakout if Dogecoin surpasses the $0.50 resistance.

Dogecoin has faced a rough patch, declining for four straight days and shedding over 25% in the past week. This downturn mirrors the struggles of other top cryptocurrencies. However, beneath this slump, there’s a silver lining: big investors, known as “whales,” are snapping up large amounts of Dogecoin.

On February 7, analyst Ali Martinez highlighted that whales had accumulated more than 100 million Dogecoins in just 24 hours. This surge in whale activity suggests growing confidence and demand for the meme-based cryptocurrency.

Additionally, data from IntoTheBlock confirms this trend. Over the past week, Dogecoin’s inflow metrics rose by 5.33%, indicating consistent short-term buying. Looking at a broader timeframe, the 30-day change stands at a whopping 323.86%, and over 90 days, inflows have skyrocketed by 3,722.46%. These figures underscore a significant increase in whale interest over the past three months.

Technical Patterns Point to Potential Rebound

While Dogecoin’s price is currently in a corrective phase, some technical analysts see promising signs. Bitcoin investor Coinvo points to a clear rounding bottom pattern on Dogecoin’s weekly chart. This pattern, which involves a gradual price decline followed by consolidation and recovery, often signals a potential bullish breakout. The price has formed a rounded base, hinting at the possibility of a significant upward move as the pattern completes.

The dotted pink line on the chart marks the resistance level around $0.50, aligning with the pattern’s neckline. Breaking this critical level could trigger a parabolic price rally, consistent with the rounding bottom’s bullish implications.

Coinvo had previously identified a corrective ABC wave pattern on the daily chart. According to him, “Everything is pointing towards a DOGE move higher.” His analysis indicates that Dogecoin may be nearing the end of its current correction phase, increasing the possibility of a bullish reversal.

Historical Trends and Future Projections

Looking back, another market analyst has examined Dogecoin’s historical price movements to predict a possible peak in its current cycle. Observations from previous cycles show that Dogecoin has followed a recurring pattern, with peak prices appearing roughly every 1,442 days.

Historical data reveals that Dogecoin surged by 21,821% in its first recorded cycle, reaching a peak in January 2018. The second cycle, ending in May 2021, saw a rise of 54,890% from its cycle low. Based on these patterns, the analyst suggests a price target exceeding $10. However, data from the chart implies an even more ambitious projection, estimating that Dogecoin could surge to $440. While such targets may seem extreme, past performance indicates that Dogecoin has the potential for explosive growth.

Dogecoin remains a highly volatile asset, but with increasing whale accumulation and bullish technical indicators, the potential for an upward movement cannot be ignored. If the momentum continues, breaking the $0.50 resistance could be the key to unlocking a major rally in the coming months.

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