At the beginning of February, Dogecoin performed an extreme rise in value, reaching the mark of $0.09462 on the second of February. This means that the crypto market is still open to risks that are driven by a lack of reasonable fundamentals. We can suggest this openness from the activity of DOGE whales as well.
DOGE whales are investors who hold a considerable portion of the total amount of coins. Their activities and behavior are very important for the cryptocurrency as they might affect the demand for it. In this article, we explain more about the influence of DOGE whales, reveal their latest activities with the asset, and provide reasons for such behavior.
Dogecoin is a very popular cryptocurrency, not only because of its meme nature. Except for making people laugh, this cryptocurrency offers a simple structure of mining that attracts many enthusiasts who are not quite into sophisticated technologies. Plus, it has a very low price that can be affected by a number of non-market events.
According to the analyses carried out by Bit Info Charts, more than 500 wallets store a number of DOGE coins amounting to $1,000,000. These investors are those whom we call DOGE whales. There are also 62 holders who have a bigger impact on the crypto as they hold a bigger number of coins — their DOGE holdings are estimated at $10,000,000 and higher
Due to the anonymity principle of the cryptocurrency, we cannot know the exact name of the person who owns the most Dogecoin. However, we can assume, that many DOGE investors are convinced that, according to the coin promotion and behavior on the market, Elon Musk is the individual who possesses the biggest amount of DOGE coins. The billionaire disputes these suggestions, so we cannot say whether it’s true or not for sure.
One more interesting suggestion, supported by Elon Musk, by the way, is that Dogecoin belongs to the Robinhood trading platform. Such suggestions were made after the community learned that the biggest number of DOGE transactions is processed through this cryptocurrency exchange.
What Do Doge Whales Respond to?
At the end of December, the DOGE value plunged to its three-month minimum of $0.06848. As of the date of writing, it’s traded at around $0.08807. Since this cryptocurrency lacks fundamental support, this surge was driven by the hype around Twitter and rumors provoked by its new owner Elon Musk. According to this gossip, Dogecoin is about to be implemented as a payment method on the most popular social network. If this really happens, the coin will break the “golden cross” technical indicator, which will facilitate its further growth even though this virtual coin lacks reasonable fundamentals that could drive its value within market conditions.
Obviously, these rumors are speculations that don’t have any fundamental background. Nevertheless, DOGE whales have to respond to these speculations, which has made the coin very volatile over the past few months. Unless DOGE is implemented for real, a significant spike cannot last for a long time because of the unavailability of consistent funding sources.
However, if this implementation really takes place, we will see a lot of activity from the DOGE whales, which will definitely drive the value much higher than its current all-time maximum. That’s why average investors and DOGE holders also need to follow the behavior of the biggest players.
The Final Thought
On the whole, you should consider that the crypto market is very volatile, and this is especially relevant for such highly speculative assets as DOGE. Because of this, it cannot be considered a real asset. Nevertheless, such an investment can bring breathtaking returns if you follow the sentiment of whales and act accordingly. To sum it up, we suggest learning more about the activity of such active community members as Elon Musk in order to understand the further direction of the DOGE price movements.