- Despite the growing popularity of memecoins, Dogecoin (DOGE) has been trading within a range-bound.
- Dogecoin whales have resumed accumulating the token, with addresses holding between 100 million and 1 billion DOGE adding over 200 million tokens since May 30.
- Historical data suggests that the ongoing price correction is part of Dogecoin’s usual behavior before a massive bull run.
Dogecoin (DOGE) has been trading within a range-bound pattern. The 24-hour trading volume has dipped below the billion-dollar mark, indicating a shift in momentum away from the token, with Pepe currently holding the title of the most traded meme coin.
However, market analysts believe that the dynamics for the DOGE price are poised to change in the near future, as the token approaches the end of its accumulation phase.
Historically, the activity of whale investors has had a profound impact on Dogecoin’s price in the long run. When accumulation increases, the likelihood of a strong upward trend also rises, although a decrease in accumulation does not necessarily signal a bearish trend.
Dogecoin whales resume accumulation
A recent Santiment chart shared by renowned analyst ALI reveals that Dogecoin whales have resumed their accumulation of the token.
The chart depicts the number of addresses holding between 100 million and 1 billion DOGE, which have collectively added over 200 million tokens to their holdings since May 30.
These whales currently possess DOGE worth more than $31 billion, representing a substantial portion of the total tokens in circulation. Despite this accumulation, the price has remained relatively stable, suggesting that the token may be gearing up for a significant move in the near future.
According to the analyst, the current price correction is a characteristic behavior of Dogecoin before embarking on a massive bull run, as evidenced by its performance in 2017 and 2021.
In 2017, the DOGE price broke out of a descending triangle pattern, followed by a 40% retracement and a subsequent bull run that exceeded 900%. Similarly, in 2021, the token underwent a retracement of over 50%, which ultimately led to an astounding rally of more than 12,000%.
