Dogecoin Whales Accumulate: Is a Bull Run on the Horizon?

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TL;DR

  • Large investors have accumulated more than 1.8 billion DOGE in the past 36 hours, reducing circulating supply, which could potentially have a positive impact on the price.
  • Trump’s pro-crypto stance and Musk’s role in the D.O.G.E. department could boost the meme coin’s popularity and value even more in the near future.

Big DOGE Move Incoming?

Over the last few days, the cryptocurrency market has seen its fair share of excitement, with increased volatility. Just yesterday, the price of Bitcoin (BTC) reached an impressive peak of over $106,000. However, it quickly dropped below $100K soon after. Remarkably, it just surged to a fresh record high of nearly $110,000 in mere minutes.

Due to the increased volatility that seems to be connected with Donald Trump’s inauguration today, Dogecoin (DOGE), the leading meme coin by market capitalization, has been impacted as well. Over the past three days, it has fluctuated between $0.34 and $0.43, currently valued at approximately $0.38, according to data from CoinGecko.

One key indicator suggesting a potential significant rally for DOGE in the near future could be attributed to the increased activity of whales. As shared by user Ali Martinez, these large investors have amassed approximately 1.83 billion tokens within the past 36 hours, which equates to over $700 million at current rates.

The progression in this asset’s production results in a decrease in its available quantity, which might cause the price to rise if demand remains steady or increases (under the assumption that supply and demand economics hold true). This process could also attract smaller investors, thereby potentially injecting more capital into the system.

The Possible Trump/Musk Effect?

A significant positive indicator for DOGE bulls is the upcoming presidency of Donald Trump, who has expressed strong support for cryptocurrencies during his campaign. As America’s 47th President, he may create a favorable environment for the crypto industry to thrive in the coming months.

As a researcher, I’ve recently come across reports suggesting that there might be plans from the Trump administration to issue an executive order. This order is intended to elevate cryptocurrencies as a policy priority and provide a platform for industry experts to contribute their insights within the administration.

It’s also important to note that Elon Musk, the CEO of Tesla, has been participating in political matters. Over the past few months, he has been part of President Trump’s inner circle and is set to lead a new department called the Department of Government Efficiency (D.O.G.E.) in the near future.

The primary objective of this entity is to minimize red tape, eliminate excess regulations, and curtail unnecessary spending within the U.S. administration. Interestingly, Dogecoin supporters have pointed out the apparent correlation between the abbreviation of their preferred cryptocurrency and the agency, suggesting that it could potentially boost the popularity of the meme coin.

After all, Musk is a strong supporter of Dogecoin, frequently lauding its benefits and promoting it on various platforms. It remains to be seen if he will share major updates related to the Dogecoin community during his tenure as head of the department.

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2025-01-20 11:36