Skip to content

DOGE’s whale activity spikes after Elon Musk’s 2nd attempt to buy Twitter

DOGE’s whale activity spikes after Elon Musk’s 2nd attempt to buy Twitter
Paul L.
Finance

Meme cryptocurrency Dogecoin (DOGE) has recorded minor gains after extended months of trading in the red zone. The rally has resulted in optimism that the token will potentially rally to regain the highs of 2021, a factor that appears to attract increased whale activity in the asset. 

In particular, as of October 4, Dogecoin recorded 85 whale transactions involving at least $100,000 while maintaining its position as the tenth largest cryptocurrency by market cap, on-chain data by Santiment indicates. 

DOGE whale transaction chart. Source: Santiment

At the same time, the excitement among whales was reflected in the asset’s price, which at some point on October 4 surged by 9% within a day. By press time, the asset was trading at $0.064, gaining almost 6% in the last 24 hours. 

DOGE 1-day price chart. Source: CoinMarketCap

With the DOGE whale funding rates spike, the metric highlights the possible course of the coin’s price action after months of suppressed interest triggered by the broader crypto market volatility. 

Impact of Musk’s Twitter deal on DOGE 

It is worth pointing out that the latest rally emerged after Tesla (NASDAQ: TSLA) CEO Elon Musk reportedly confirmed he might be moving forward with finalizing the deal to purchase social media platform Twitter (NYSE: TWTR).

Notably, there exists a relationship between Musk and the Dogecoin community. Musk has previously expressed support for DOGE while working with core developers in a bid to build the meme coins viability.

Overall, Musk’s previous tweets about Dogecoin have sent the token’s price soaring. At the same time, if the deal goes through, it could be a bullish sentiment for Dogecoin. 

What next for DOGE?

In this case, days after Musk proposed buying Twitter in April, the SpaceX founder hinted that he might be adding DOGE as a payment method on the social media platform. Already, Twitter is enabling users to set non-fungible tokens (NFTs) as profile pictures, alongside using Bitcoin (BTC) and Ethereum (ETH) for the transaction to receive tips.

As whales take a position in DOGE, it is unclear if the Musk Twitter deal trigger will lead to a sustained rally in the token. Notably, Dogecoin has recently recorded sideways consolidation with resistance preventing upside bullish momentum. 

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

 

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.