Dogecoin (CRYPTO: DOGE) might be struggling, but large investors are seizing the moment to load up on the memecoin at a discount.
Whales May Be On To Something
Widely followed cryptocurrency analyst Ali Martinez highlighted in an X post that whales accumulated over 200 million DOGE tokens over the last week. At the prevailing prices, this amounted to $16.80 million.
The buying occurred as the price tested a major multi-year support level around $0.081, a zone with significant historical concentration of DOGE tokens.
Notably, Grayscale Dogecoin Trust ETF (NYSE:GDOG), 21Shares Dogecoin ETF (NASDAQ:TDOG), and Bitwise Dogecoin ETF (NYSE:BWOW) attracted over $662,000 in net inflows for the week ending June 5, per data from SoSo Value.
This inflow occurred despite DOGE dropping 18% last week, hitting its lowest level since February 2024.
Is A Recovery Imminent?
Notably, Binance’s top traders, i.e., top 20% users with the highest margin balance, increased their long exposure to Bitcoin since the week began, rebounding from last week's sharp dip, according to data from Coinglass.
However, the Moving Average Convergence Divergence indicator, which compares two exponential moving averages of an asset’s price, typically the 12-period and the 26-period, flashed a “Sell” signal for DOGE, according to TradingView.
DOGE Surrounded By Bears
Overall, the dog-themed memecoin has struggled, weighed down by geopolitical tensions and the fallout from Bitcoin’s (CRYPTO: BTC) latest decline.
The long-standing correlation with Elon Musk, which powered the token for years, has also gradually faded.
Price Action: At the time of writing, DOGE was exchanging hands at $0.08402, down 2.75% in the last 24 hours, according to data from Benzinga Pro.
Photo courtesy: alfernec on Shutterstock.com
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