Dogecoin price hit a 24-hour timeframe peak of $0.16 on Thursday, May 16, bringing DOGE’s growth performance for the month to 32%, with recent activities among whale investors capable of driving another leg-up.Â
DOGE Surges 32% in May amid Bullish Catalysts from Tesla, Gamestop
Dogecoin price struggled for momentum in the first half of May 2024. However, this week, the bull traders appear to have seized control of the DOGE markets. At the time of writing, DOGE is trading at $0.16, up 32% for the month.
Dogecoin’s positive price performance in May could be majorly attributed to emerging bullish factors surrounding Elon Musk’s Tesla and the resurgent Gamestop rally.
Reports surrounding Tesla sparked the first wave of the Dogecoin price rally. Notably, prominent crypto community figure Crypto Rand called attention to Tesla’s acceptance of DOGE as payment method for its merchandise. The media personality disclosed this as a recent move, but it in fact occurred two years ago, as The Crypto Basic confirmed.
However, amid the ruckus triggered by this disclosure, Dogecoin price rose to a 20-day peak of $0.17 on May 7. But, by May 12, the bulls had succumbed to a 15% correction as the broader crypto markets slipped into a week-long recess.
Interestingly, this week, DOGE’s latest price breakout has coincided with the resurgent Gamestop saga which has led to a parallel bullish retail activity in the crypto memecoin markets.
Whale Investors Have Acquired 820M DOGE in May 2024
At the time of writing, DOGE has rebounded above 0.15%, erasing last week’s losses. While retail campaign surrounding Gamestop has dominated crypto media headlines, on-chain data shows whale investors have been aping into the Dogecoin rally behind the scenes.
The Santiment chart below presents cumulative balances held in whale wallets with a minimum balance of 1 million DOGE (~$150,000). This metric essentially provides insights into real-time swings in whale investors buying and selling trend.
As seen above, the whales held a total of 57.06 billion DOGE as of May 1, 2024. At the time of publication on May 16, these whales’ holdings have skyrocketed to 57.9 billion DOGE.
This implies that crypto whales have acquired 822 million DOGE since the start of May 2024. When valued at current prices, the whales have invested an additional $130 million, capitalizing on the bullish tailwinds from Dogecoin’s recent links to Tesla and Gamestop.
When whales make such large acquisitions during a rally, it often intensifies the upward price movement for two main reasons. First, the positive sentiment surrounding the whales’ bullish activity can encourage prospective buyers on the sidelines to enter the fray.
In addition, the large volume purchases from these whales add significant liquidity to the markets, allowing early profit-takers to exit without driving Dogecoin prices downwards.
Dogecoin Price Forecast: One More Roadblock before $0.20 Breakout
The resurgent Gamestop rally and whales investing $130 million in May 2024 are critical bullish catalysts that could combine to drive Dogecoin price above $0.20 in the days ahead.
However, the upper-band Bollinger band technical indicator suggests that DOGE bulls now face a major resistance cluster at the $0.17 level.
Nonetheless, if the whales keep up the buying trend, Dogecoin price rally could gain momentum for another leg-up above the $0.20 milestone.
On the flip side, in the event of a market reversal, the bulls will likely mount a solid support buy wall at the $0.13 level.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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