Elon Musk’s cryptic “D.O.G.E” post on the social media platform X (formerly Twitter) on September 7 has sparked a surge in Dogecoin’s (DOGE) value. Since the post, the meme coin has seen a 9% increase in price.
Whales have also ramped up their trading activity, positioning Dogecoin to potentially extend its recent gains.
Dogecoin Whales Set Their Eyes on More Gains
DOGE’s large holders have increased their coin accumulation following the price rebound that followed Musk’s “D.O.G.E” post. According to IntoTheBlock’s data, the meme coin’s large holders’ netflow has spiked by 832% over the past seven days. This represents an accumulation of 708 million DOGE coins worth over $69 million at current market prices.
Dogecoin Large Holders’ Netflow. Source: IntoTheBlock
DOGE large holders, or whale addresses controlling more than 0.1% of its circulating supply, play a crucial role in price movements. Their netflow, which tracks the difference between coins bought and sold over time, provides key insights. A spike in netflow signals increased accumulation by these whales, often prompting retail investors to follow suit, which is typically a bullish indicator.
Since Elon Musk’s post, DOGE’s weighted sentiment has shifted from negative to positive. According to Santiment data, DOGE’s current weighted sentiment, a measure of market mood, sits at 0.59, reflecting growing optimism.
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Dogecoin Weighted Sentiment. Source: Santiment
When an asset’s weighted sentiment is positive, it indicates that the majority of social media mentions, news articles, and online discussions are bullish.
DOGE Price Prediction: Double-Digit Gains on the Horizon
Dogecoin’s rising price is supported by a surging Chaikin Money Flow (CMF), which measures money flow into the market. Currently in an uptrend at 0.08, the positive CMF indicates that buying pressure is outweighing selling activity. As the CMF rises, it suggests strengthening buying momentum, potentially sustaining Dogecoin’s uptrend.
Additionally, Dogecoin’s On-Balance Volume (OBV), which tracks buying and selling pressure, has also been climbing over the past few days. This upward trend in OBV signals strong demand for DOGE, potentially pushing its price higher.
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Dogecoin Price Analysis. Source: TradingView
If this buying momentum continues, DOGE could rise by an additional 22%, reaching $0.11. However, if whale accumulation slows and large holders start selling for profit, the meme coin’s value could drop, potentially revisiting its August 5 low of $0.08.
Conclusion:
As Dogecoin continues to ride the waves of Elon Musk’s social media posts and the activities of large holders, its value remains at the mercy of market sentiment and trading dynamics. With positive sentiment and strong buying momentum, the meme coin could see further gains in the near future. However, investors should remain cautious as rapid shifts in whale activity and market sentiment can also lead to sudden price drops. Stay tuned to DeFi Daily News for more trending news articles like this to stay informed and make informed decisions in the volatile cryptocurrency market.
