Major Metric Shows DOGE In For 200% Surge
Well-known crypto analyst and trader Ali Martinez believes that the chances of Dogecoin recording a massive price surge are high.
According to the analyst, the original meme token might record a spike of a whopping 200%. This had happened back in February as well.
Just like that time, the meme currency has been facing a great deal of bearish market sentiment.
The surge
In early March, the price of Dogecoin had climbed to $0.18, after the rise of Bitcoin. This was after more than a month of the approval of spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC).
It appears that whales are also watching this metric, as they have begun moving huge amounts of Dogecoin. A number of these transactions have been highlighted as purchases.
According to Ali Martinez, the last three days have seen Dogecoin whales accumulate more than 700 million tokens. He even shared a chart to confirm that.
The value of these tokens is estimated at about $112 million. Other than that, Whale Alert, the popular crypto tracker, also highlighted the massive amount of DOGE transfers.
DOGE transfers
Data shows that a total of four transactions saw the movement of almost 1.5 million DOGE tokens. In the last two days, these tokens have changed hands.
The last 24 hours saw the transfer of 420,696,969, 970,000,000 and 499,420,696 DOGE tokens between anonymous whales.
The popular trading platform Robinhood recorded a withdrawal of 90,000,000 DOGE tokens to an unknown blockchain address.
At publishing time, the value of these 1.579 DOGE tokens stood at $251,410,009. The last 24 hours saw DOGE record a rise of 2.89% after it had recorded an overnight decline of 4.25%.
The impact
The rise in buying activity could prove to be good for the price of Dogecoin. This is due to the fact that it highlights a rise in demand for the largest meme token in the market.
It could eventually lead to a price rise. The last seven days have mostly seen the price of DOGE record sideways movement.
However, the increase in whale accumulation could change things for the meme token. If sustained, it could lead to a break out in the price and it would surge above $0.20.
But, other metrics would also have to align for this bullish prediction to turn into a reality. If the metrics align, then the price would head in this direction.
On the other hand, if it fails to do so, then the price of DOGE could actually plunge as low as $0.12. The 90-day Mean Coin Age (MCA) has been on the rise since the first week of April.
It was the same until the 29th of May. Therefore, it is possible that the sell-offs by long-term holders were the reason that DOGE had been stuck between $0.13 and $0.16 in the past month.
However, the metric has been on a decline in the last three days. It has dropped to 49.08, which shows more holders are interested in keeping their holdings in self-custody rather than exchanges.
