Dogecoin (DOGE), the world’s largest memecoin by market cap, has rallied recently, skyrocketing by over 77% to reach $0.1624. But what could have led to this price action?
The recent rally in DOGE appears to have been fueled by a surge in the number of large investors (often referred to as “whales” in the crypto realm).
Dogecoin Millionaires on the Rise
According to data from IntoTheBlock, the number of addresses holding over $1 million worth of DOGE has skyrocketed by a significant 76% in the past 30 days.
The number of Dogecoin millionaires is skyrocketing!
The number of addresses holding more than $1m worth of $DOGE has increased by 76% in the last 30 days. There are now over 1000 Dogecoin millionaires. pic.twitter.com/3qzb0OGeUM— IntoTheBlock (@intotheblock) March 6, 2024
This surge has resulted in over 1,000 addresses now holding millions of dollars worth of the meme-based cryptocurrency. Increased demand and accumulation of a cryptocurrency often lead to a rise in its price.
This development coincides with the rise in the Dogecoin ecosystem’s market activity, which has also contributed to the rally. At one point in January, the number of new addresses created on the Dogecoin network skyrocketed 1100%, according to data from IntoTheBlock.
The data also showed that on January 29 alone, newly created Dogecoin addresses hit an all-time high (ATH) of 247,240. The data revealed that the number of new DOGE addresses has steadily increased since the beginning of the year.
Moreover, another data showed that the number of addresses holding over 100,000 DOGE has increased since January. Last November, Coinfomania reported that the number of crypto addresses holding DOGE hit 5 million for the first time.
Parabolic Run Incoming?
While these metrics have contributed to the rally in the price of DOGE, analysts are even predicting a more bullish outlook for the memecoin in the coming months.
In a recent tweet, renowned analyst Ali Martinez shared a DOGE chart detailing his bullish outlook for the memecoin.
According to Martinez, the recent rally in DOGE’s price mirrors similar patterns in its past bull run (in 2017 and 2021), and “if history repeats itself, we could see DOGE enter a parabolic breakout around April.”
His analysis predicted DOGE to rise to $3.5. This price translates to a new ATH for the dog-themed memecoin.
