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Dogecoin whale transactions soar to 4-month high; Is a big price move imminent?

After the news broke that Elon Musk had finalized the purchase of Twitter for $45 billion, his favorite cryptocurrency Dogecoin (DOGE) reacted as it has time and again when its main proponent said or did something meaningful or controversial.

This time, DOGE has reached a four-month high in transactions by whales, suggesting they may be positioning for a big price move in the future, as crypto analyst Ali Martinez tweeted on April 26.

To drive his point home, Martinez posted a chart that shows an increase in the number of large transactions on April 25, along with a slight increase in price.

Source: Ali Martinez

Specifically, the number of transactions on the DOGE network with a value greater than $100,000 reached a four-month high at 2,440 transactions. According to Martinez:

“Such market behavior can act as a proxy for whales’ activity, suggesting how they may be positioning for a big price move.”

DOGE price analysis

Speaking of price movements, Martinez also posted a chart showing that DOGE looks to be heading to $0.24, after breaking out from a falling wedge pattern on the seven-day charts. 

Source: Ali Martinez

However, he did warn that:

“Failing to hold above the $0.13 support level can invalidate the bullish outlook for DOGE.”

It is also worth noting that Finbold earlier reported on DOGE adding as much as $2 billion to its market capitalization in only one hour, as Musk was still trying to reach a deal over the proposed takeover of the Twitter (NYSE: TWTR) platform.

As a direct consequence of the confirmed takeover news, the price of Dogecoin skyrocketed, rising from $0.1248 to a high of $0.1374 in under an hour, and its market cap from $16.56 billion to $18.64 billion in an hour.

At press time, DOGE was trading at $0.1652, up 32.68% over 24 hours and 18.16% across the week, as per CoinMarketCap data. It remains to be seen whether it will continue to bullishly push upward and perhaps even regain $0.50 (or more) in 2022.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

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