Despite market dip whales purchase over 400 million Dogecoins

Despite market dip whales purchase over 400 million Dogecoins

The crypto market has taken a significant nosedive today. Everything is crimson as investors avoid risk assets for the time being. Regardless of this, it appears that Dogecoin (DOGE) is attracting a lot of whale purchasers.

Big cryptocurrency wallets are displaying an emerging pattern of buying DOGE dips.

According to data from Cryptoquant, a leading provider of cryptocurrency analytics, large Dogecoin holders (those holding 10 million or more DOGE). Continued to accumulate the cryptocurrency even as prices plunged today.

In total, these so-called whales bought 400 million DOGE in the past 24 hours. Here are some key points:

  • In recent months, Dogecoin whale accounts have acquired over 400 million Dogecoins ($31 million) worth of currency.
  • DOGE is also held in the portfolios of thousands of large wallets on Binance’s Smart Chain.
  • This is all occurring as meme coin prices plunge.
Data Source: Tradingview

Why are Whales purchasing Dogecoin?

Given current market conditions, it’s pointless to buy high-volatile coins like DOGE. However, for most large wallet keepers.

The DOGE downturn appears to be a chance to acquire the currency at a low price. In the near term, analysts predict that DOGE will continue to drop.

So, the whales buying now may be feeling confident about the long-term prospects of the meme coin. Dogecoin is famous for its Shiba Inu mascot and its meme-based community. 

The price has collapsed by 20% in the last 24 hours, and it’s now hovering within a crucial $0.054 support level. The price will most likely fall below this area and into a downward spiral.

On the other hand, Binance Smart Chain’s (BSC) native token, BNB. Is also being accumulated by large wallets during this market crash. BNB is currently trading at $283 and is down by over 10% in the last 24 hours.

The market crash has seen many investors selling their assets to avoid further losses. However, some whales seem to be taking this opportunity to accumulate more DOGE and BNB.

This indicates that whales are confident about the long-term prospects of the platform. And believe that now is the perfect time to buy the dip.

Despite this, the price of DOGE has dropped by almost 90% from its all-time peak. Nonetheless, in the medium term, we should see a change in investor sentiment.

As a result, whales are prepared to wait it out. And bleed dry now to see a major comeback in the future.

This is not the first time we have seen whales buying the dip. This has become a pattern in the cryptocurrency market.

When prices crash, whales step in and start accumulating assets at lower prices. This often leads to a reversal in the trend and prices start moving higher again.

So, if you are feeling bearish about the market right now, take heart. The whales are still confident about the future of cryptocurrency and are ready to buy the dip.

Should you invest in a whale market?

It’s often a good idea to track big wallets in your portfolio. However, things are more challenging with DOGE. We’re currently in the midst of a very turbulent time for cryptocurrency. 

In such a market, it is often difficult to predict the behavior of whales. So, if you want to invest in DOGE, it is best to wait for the market to stabilize first.

Many coins have a very volatile value. As a result, purchasing DOGE right now might expose you to a significant loss. If the market does not recover from the current downturn.

On the other hand, if you are patient and wait for the market to stabilize. You could stand to benefit greatly from investing in DOGE.