Dogecoin (DOGE) has skyrocketed over 77% this week, riding a wave of positive sentiment across the cryptocurrency market. The recent rally coincides with increased DOGE accumulation among large investors, known as “whales.”
The number of addresses holding over 100,000 DOGE has risen since January, while there’s been a slight decrease in addresses holding over 1 million DOGE. This suggests that traders on exchanges, often represented by these larger addresses, are accumulating DOGE rather than actively trading it.
Furthermore, Dogecoin’s price surge aligns with historical trends observed before previous Bitcoin halvings. The upcoming halving, scheduled for April 19, 2024, could be driving interest in DOGE, as some traders seek alternative investments for potentially higher short-term gains in anticipation of the event and its impact on the broader market. This aligns with similar price increases observed before the previous two Bitcoin halvings, where DOGE rose 200% and 50% respectively.
Similar trends are playing out in other memecoins like Shiba Inu, Pepe, and Bonk, all demonstrating significant gains in the lead-up to the halving. This suggests a broader memecoin rally, possibly fueled by anticipation of increased market activity surrounding the Bitcoin halving.