Whale Moves $157 Million in Dogecoin Amid Depressed Meme Market
According to Cryptopolitan, a significant Dogecoin whale has moved over $157 million worth of DOGE from a wallet that had been accumulating the cryptocurrency since 2021. The funds were transferred in batches to unknown addresses, bypassing exchanges. This activity occurred during a downturn in the meme-token market, which has been struggling since the end of the U.S. election euphoria.
The whale's wallet had been receiving regular inflows of Dogecoin, with transactions ranging from 4 million to 5 million DOGE. The pattern of these transactions suggests that the wallet may belong to a miner, as Dogecoin mining produces 10,000 new coins every two minutes. Despite Dogecoin's infinite inflationary nature, miners continue to profit, especially as it is mined alongside Litecoin. However, the volume of whale wallets has dropped by 88%, indicating that early investors may have cashed out or lost interest in trading.
Dogecoin's price has recently recovered to $0.20, but the token remains a speculative asset with no significant utility. The top 10 addresses hold over 45% of all Dogecoin, with the largest address alone accounting for 19.45% of the supply. Despite its challenges, Dogecoin maintains over $1 billion in daily trading volume and is closely correlated with Bitcoin's price movements, with a correlation index of 0.92.
Source: Cryptopolitan (https://www.cryptopolitan.com/de/whale-moves-157m-doge-depressed-meme/)
Dogecoin Analysts Predict 300% Growth and ETF as a Gamechanger
The Krypto Magazin reports that Dogecoin is once again in the spotlight, with analysts speculating a potential rally that could push its price to $1 or beyond. Currently trading at $0.1998, Dogecoin has seen a 5.36% increase in the last 24 hours but remains far below its all-time high of $0.7386 from May 2021. With a market capitalization of $29.52 billion, the cryptocurrency faces challenges such as an annual inflation rate of 3.07% and an unlimited supply, which hinder significant price increases.
Despite these hurdles, the number of Dogecoin addresses has reached a record 83.48 million, indicating increased network engagement. Active addresses have surged by 111.32%, and those with zero balances have risen by 155.34%. Analysts suggest that historical cycles could lead to a parabolic rally, with some predicting a long-term price target of $3.70. Additionally, a proposed Dogecoin ETF by Bitwise, currently under review by the SEC, could attract institutional investors and boost liquidity.
However, the sustainability of such growth remains uncertain. While technical indicators like the Relative Strength Index (RSI) suggest that Dogecoin is oversold and may experience a short-term recovery, its long-term prospects are clouded by its inflationary nature and lack of a clear use case.
Source: Krypto Magazin (https://www.krypto-magazin.de/dogecoin-vor-dem-durchbruch-analysten-sehen-300-potenzial-und-neuen-etf-als-gamechanger/)
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