Major Dogecoin investors have accumulated approximately 1.7 billion DOGE tokens valued at $298 million over a 72-hour period, despite the cryptocurrency experiencing a significant price decline. The accumulation comes as the meme-based digital currency has fallen roughly 20% in a week, dropping from $0.22 to as low as $0.16.
Crypto analyst Lumen highlighted this substantial buying activity in a post on X, suggesting it signals bullish sentiment ahead of a potential Dogecoin ETF approval. "If DOGE reclaims $0.2 before the ETFs approval, there is a possibility that Dogecoin could rally to $0.5 because of the liquidity of ETFs," Lumen stated. The analyst also mentioned that Elon Musk, currently the world's richest person, might resume positive posting about DOGE as he has done previously.
The U.S. Securities and Exchange Commission recently postponed the approval process for Grayscale's Dogecoin ETF. This delay suggests that pending DOGE ETF applications are unlikely to receive approval in the immediate future.
Despite this setback, crypto analyst Ali Martinez has offered an optimistic outlook. Martinez noted that investor sentiment surrounding Dogecoin is at its most negative point in over a year, adding that "historically, extreme fear has set the stage for major reversals." He suggested the current climate might present "a prime opportunity to be a contrarian."
Several technical indicators are providing context for DOGE's current position in the market. According to analyst Kevin Capital, the cryptocurrency has undergone a back test of the macro 0.5 Fibonacci level and has also tested macro trend lines, including the 200-week Simple Moving Average and Exponential Moving Average.
Capital further remarked that the meme coin's 3-day Relative Strength Index is at historical lows. "If the Bitcoin price holds up and macroeconomic data and monetary policy adjust, then this might be the last opportunity to buy DOGE relatively cheaply," he stated. The analyst emphasized that while numerous factors are at play and "there is a lot of work to do," the risk-reward ratio at current price levels is "superb" given the circumstances.
Adding to the technical analysis, Trader Tardigrade observed that DOGE is forming a 5-wave Ascending Broadening Wedge and is approaching a breakout on the 4-hour chart. Following a confirmed RSI bullish divergence, Dogecoin has bounced back to the descending line of the wedge, which Tardigrade interprets as an indication that "a reversal may be imminent."
The accumulation by major holders comes during a period of considerable volatility for the cryptocurrency market broadly. While smaller investors have shown hesitation, these large-scale acquisitions potentially signal confidence in Dogecoin's longer-term prospects despite current market conditions.
As of publication, DOGE is trading at approximately $0.16, representing an increase of over 2% in the past 24 hours, according to data from CoinMarketCap. The modest gain follows several days of downward pressure that had pushed the token to recent lows.
Whether the cryptocurrency can reclaim previous price levels remains uncertain, but the substantial accumulation by major holders suggests some market participants are positioning for a potential recovery. Analysts continue to monitor both technical indicators and regulatory developments that could influence Dogecoin's price trajectory in the coming weeks.