Whales bought hundreds of millions of Dogecoin over the weekend, which shows a renewed interest in the memecoin.
Dogecoin is also facing competition from newer memecoins like Shiba Inu and Pepe, but the overall investment in memecoins is increasing.
Crypto analysts like Michael van de Poppe and Ali have so far predicted an incoming surge in Dogecoin's price, leading it up to $1 or higher.
While the exchange inflows and outflows of Dogecoin are almost identical, fewer investors are selling, adding to this bullish sentiment
Dogecoin's price movement is still strongly tied to Bitcoin's, so investors need to monitor Bitcoin as well
Dogecoin, the forerunning memecoin has been the subject of several predictions over the last two years.
The “memecoin king” has been underperforming, compared to the rest of the market, considering the number of new memecoins being released almost every day.
We now have memecoins like BONK, WIF, PEPE and even SHIB attempting to take the crown from Dogecoin, and if something spectacular doesn’t happen soon, Dogecoin remains at risk of a “flippening”.
While on the subject of “something spectacular”, the Dogecoin whales have been observed doing something interesting since last week.
Coupled with several on-chain metrics, we are set to analyze the question: Is Dogecoin primed for a rally to $1 in this cycle?
Over the weekend, the whales managed to rake in a staggering 700 million $DOGE (worth around $110 million) in three days, according to insights from renowned analyst, Ali Martinez.
This whale behaviour paints a bullish picture for Dogecoin’s price action, especially since it portrays a renewed interest in this memecoin.
Moreover, this recent wave of investment in Dogecoin comes amid a broader trend of memecoin investment from the general crypto market, with Shiba Inu, Pepe and half a dozen other newer projects entering the spotlight.
Singapore-based crypto trading firm, QCP Capital even mentioned something to this effect in its latest analysis.
The trading firm noted that the shift in trader focus towards higher beta meme tokens like Shiba Inu, Dogecoin, and Pepe is now noticeable and that these tokens, after experiencing double-digit gains from 10% to 20% are now ranked among the top ten by open interest.
Moreover, these whales that Ali mentions in his tweet, currently hold around 63% of Dogecoin’s total supply—which says a lot about the memecoin’s future.
A few days before ALi’s tweet, crypto expert Michael van de Poppe also took to Twitter to predict a massive breakout for Dogecoin.
The analyst suggests that Dogecoin might be ready to explode to the upside by around 566%, eventually stopping at the much-awaited $1 mark or higher.
This outlook is particularly interesting, considering how analysts have mostly pinned this $1 price target on Dogecoin, and investors are likely eagerly waiting for the signs of this bullish momentum.
Dogecoin analytics from IntoTheBlock
According to IntoTheBlock, Dogecoin currently has a strong, almost unnatural correlation to Bitcoin (86%), and traders should closely monitor this relationship.
Moreover, over the past week, IntoTheBlock data also shows that Dogecoin has maintained a near-equal flow between inflows and outflows from exchanges. Approximately $199.66 million flowed into DOGE, while $204.68 million flowed out as referenced by IntoTheBlock.
This shows that while the buyers and sellers have almost equal footing, fewer people are willing to sell their Dogecoin and are therefore withdrawing their coins from exchanges.
Dogecoin’s open interest
Dogecoin's open interest has also been on the rise, after declining from around $2.21 billion on 29 March.
At the time of writing, the open interest in Dogecoin is making its way back up, and currently sits at around $1 billion as of 3 June, compared to a mere $700 million a month ago, on 2 May.
In total, Dogecoin's rally is incoming, no matter how long it takes. And when this rally eventually comes, analysts foresee a nearly straightforward rally to the $1 mark or higher.
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