Large Dogecoin investors, often referred to as “whales,” have increased their DOGE holdings over the past week. On-chain data shows that this leading Meme Coin Coin is undervalued, creating a buying opportunity for those looking to trade against the current market trend.
With whales increasing their accumulation, DOGE may be preparing for a short-term recovery. This analysis will explain why.
Dogecoin Whales Are Back
Over the past week, Dogecoin whales holding between 10 million and 100 million DOGE accumulated an additional 410 million DOGE, worth about $140 million. This group of whales currently holds a total of 22.54 billion DOGE — the highest since February 2016.
When large holders of an asset increase in accumulation, it demonstrates confidence in its short-term potential. This buying activity reduces circulating supply, which can create scarcity and push up prices. Furthermore, whale accumulation often attracts retail investors, increasing demand and supporting price increases.
The reason for the recent increase in accumulation of DOGE whales is clear. Reading the negative market value to real value (MVRV) shows that this Meme Coin Coin is currently undervalued, creating a good buying opportunity for those looking to take advantage of the market trend.
At this time, the Token’s one-day MVRV rate is -1.76. This index measures whether an asset is undervalued or overvalued.
Negative MVRV ratios like this usually show a buy signal. They show the asset is trading below its historical purchase price and may be preparing for a recovery. Therefore, this is a good buying opportunity for those who want to “buy on dips” and sell for profit.
DOGE Price Prediction: Accumulation Could Push Price To $0.48
On the daily chart, the DOGE Chaikin Money Flow (CMF) Index reflects increasing accumulation. At this time, the momentum indicator is on track to increase to 0.03.
When an asset’s CMF is positive, it indicates buying pressure in the market, with more money coming into the asset than going out. This shows strong confidence from investors and is a positive signal for the price trend.
Therefore, if DOGE whales continue to accumulate, the price of Meme Coin could reach 0.48 USD. Conversely, if the sell-offs continue, the price could drop to $0.29.