Did Elon Musk Offload 250 Million Dogecoin (DOGE)?

• On-chain activities of Dogecoin reach a significant height as a whale transfers 250 million DOGE to Robinhood and 83 million DOGE to a blockchain address. 
• An analyst has observed the formation of a 2018-2021 pattern that could send Doge to $1.5. 

The price of Dogecoin (Doge) is expected to retest and set a new all-time high record as investors await for catalysts which in the previous bull cycle largely involved Tesla’s Elon Musk. Pending the upcoming Bitcoin halving, large investors have started moving the asset in large quantities as Whale Alert reports a transaction that involves a staggering 250 million DOGE ($49 million).

The amount was transferred from an unknown wallet to the Robinhood trading platform. Shortly after, another whopping sum of 83 million DOGE ($17.3 million) was moved to an unknown blockchain wallet. Interestingly, this has caught the attention of the Doge community, leading to speculations that the transactions could have been facilitated by Elon Musk. 

Musk has been a huge fan of Dogecoin with his controversial tweets dragging the price to an all-time high price of $0.73 on May 8, 2021. These transactions also occurred at the time Musk’s company is reported to have secured payment operation licenses in three additional US states. Amid all these, the Dogecoin community awaits the integration of their favorite meme coin in Musk’s social media platform X. 

Dogecoin’s Whale Activities on the Rise

Doge has been on an upward surge since hitting its 27-month high of $0.228. According to analysts, the asset has keenly followed the price movement of Bitcoin, however, its move to $0.2153 following a 6% daily surge indicates a bullish sentiment among investors. Currently, Doge’s seven-day return stands at 21% and has also recorded a 1.27% surge in the past 24 hours to trade at $0.20. Interestingly, the weekly price move was largely influenced by the recent purchases by whales. 

Prior to the most recent whale transfer, 1.4 billion DOGE had been acquired by whales at $280 million in the past two weeks, bringing the total holding to 16.7 billion DOGE. Whale wallets containing 10 million to 100 million DOGE tokens are also reported to have consistently increased their holdings since March 15. 

Price Analysis of Doge

An interesting observation is that most of these whales are long-term investors whose position could steadily push the asset along the price curve in a sustained manner. Regardless of its weekly on-chain activities, the price is still 70% down from its all-high. Also, its market cap of $30 billion is significantly less than the $75 billion recorded at the peak of the previous bull market. Regardless, it has overtaken the likes of Avalanche (AVAX) and Cardano (ADA) to become the 8th largest coin. Doge is currently trailing USDC and XRP by $2 billion and $3 billion respectively. 

Speaking on Dogecoin, Ali Martinez has disclosed a formation similar to its 2018-2021 pattern. According to him, the weekly price chart earlier formed a descending triangle pattern that emerged since the May 2021 peak. The asset has in the past few months broken above the triangle’s upper trendline, invalidating the bearish sentiment that is often associated with this pattern. In a nutshell, the price is expected to go as high as $1.5 once the prediction is confirmed. 

I feel my fellow degens have been distracted with the new shiny meme coins, but Dogecoin remains the most important altcoin in this sector. From a technical perspective, DOGE seems to mirror the 2018-2021 pattern. If so, DOGE could be at the very beginning of a massive parabolic bull run!

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