Dogecoin Whales Accumulate Nearly 1 Billion DOGE in Two Days After Elon Musk's Crypto Forecast

In a surprising turn of events, Dogecoin whales have accumulated nearly 1 billion DOGE in just two days following Elon Musk's recent crypto forecast. This significant accumulation has sparked renewed interest and optimism in the meme coin community, with investors bullish on its potential for a rally.

According to data from crypto analyst Ali Martinez, Dogecoin whales swiftly purchased over 470 million DOGE in the past two days. This buying frenzy was concurrent with a 20% plunge in the price of Dogecoin, from $0.39620 to a low of $0.31648. Despite the recent price drop, whales may be anticipating a future rally in Dogecoin's price, potentially profiting from a rebound in the market.



Elon Musk's influence on the crypto market is significant, and his comments often drive retail interest in Dogecoin. His recent hints about the potential future slump of cryptocurrency prices may have encouraged whales to accumulate more DOGE. Additionally, Musk's rumored plan to acquire Liverpool FC could reinvigorate bullish momentum for Dogecoin, as traders anticipate Musk's involvement to bring DOGE back into the spotlight.

The recent accumulation trend comes as the Dogecoin price is seeing renewed momentum, experiencing price increases despite the broader market volatility. This further bolsters the positive market sentiment surrounding the meme coin. Moreover, with Dogecoin closing October in the green, the potential for continued price increases is still in play.



Including its increase in whale activity, DOGE has also experienced a surge in its market capitalization and trading volume. The meme coin's trading volume is up by 30.95% while its market cap has climbed to $22.12 billion, securing its position as the 8th largest cryptocurrency.

Dogecoin's Network Value to Transactions (NVT) ratio has surged dramatically to 703, marking a significant uptick after a period of extended low values. This increase highlights that DOGE's market valuation is growing faster than its transaction volume, potentially indicating stronger investor sentiment. However, such a spike often reflects speculation or long-term accumulation rather than immediate utility.



Daily active addresses have risen steadily, from 72.2K the previous day to 86.6K at press time. This consistent growth suggests a resurgence in network engagement, often translating to increased trading volume and activity. Additionally, an uptick in addresses typically points to greater confidence among retail and institutional investors alike. Sustained growth in active addresses could support a broader bullish narrative for Dogecoin.



Dogecoin's market sentiment reflects cautious optimism, with open interest rising 5.25% to $3.49 billion. Recent liquidations reveal a higher volume of short positions ($22.59K) compared to long positions ($372.57K). This imbalance suggests that bearish traders are being squeezed out, often resulting in further upward price momentum. Consequently, the market appears tilted toward favoring bullish outcomes in the short term.



In conclusion, Dogecoin's whale activity, rising on-chain metrics, and bullish price action paint a positive outlook for the meme coin. However, breaking above the $0.40 resistance remains crucial to confirm a sustained rally. If this level is breached, Dogecoin could aim for its next target at $0.50 and beyond. Therefore, with growing network activity and increased market confidence, Dogecoin seems well-positioned for another major move.