- DOGE whales are playing a textbook market manipulation game, driving the memecoin into a volatile slump.
- With the stakes higher than many might expect, caution is key.
As a seasoned researcher with years of observing and analyzing market trends, I find myself both intrigued and cautious about the recent developments in Dogecoin (DOGE). The whales’ apparent manipulation of the memecoin’s price has become a textbook example of market volatility.
About a month back, Bitcoin [BTC] reached an all-time high of 100K for the very first time. Ever since, it’s been on an upward trajectory, causing the market to flourish in green as investors hurriedly broadened their investment portfolios.
Memecoins once held the limelight, but the focus soon moved towards altcoins which took center stage. Even Dogecoin, the leading memecoin, found it challenging to maintain pace, managing only a 5% increase over the past 30 days.
Currently, DOGE is approaching the opening price from last month ($0.43410) that it struggled to surpass in two previous attempts, as it aims for $0.50. However, this level seems to be a significant barrier, with whales making persistent efforts to overcome it.
The main issue here is: Could these whales be planning a sustained effort towards DOGE, or will they continue to influence meme-coins, potentially keeping DOGE trapped in its unpredictable downturn?
Big hands are manipulating DOGE’s price
It’s not unexpected that the ‘Trump pump’ has helped numerous cryptocurrencies regain an upward trend, providing long-term investors (HODLers) with a welcomed respite since their investments have been relatively static for several years.
Without deviation from the norm, Doge’s price had been confined within a narrow band for the last three years, fluctuating between approximately 6 cents and 15 cents.
It became evident during the initial week of the election that those who were holding onto this asset would eventually decide to sell and reap the significant profits (over 10%) they had been patiently accumulating.
Among these individuals were major players holding substantial Dogecoin (DOGE), who started moving large quantities of coins back into exchanges.
The surge of actions occurred concurrently with a prolonged red candle appearing on the daily graph, indicating a significant 11% drop within one day – this being the third instance where DOGE was unable to surpass the $0.48 resistance level.
However, these actions could just be the start of a larger trend. With Dogecoin (DOGE) sliding back towards the $0.40 mark, it seems that whales have seized the moment, acquiring an extra 160 million tokens in the process.
Based on AMBCrypto’s report, it appears that this pattern suggests an attempt to control Dogecoin through a ‘tug-of-war’ approach – purchasing at low prices for savings and selling at high prices for profits, a classic method often employed in market manipulation.
So, should you buy the dip?
Viewed generally, widespread market fluctuations have caused apprehension among novice investors, leading them to favor lower to mid-tier investment options perceived as safer. Remarkably, many of these investments have experienced close to a 10% increase in value compared to the preceding day.
Furthermore, continuous manipulation of the market by major players might continue to instill caution among individual investors, potentially discouraging them from investing in meme-based cryptocurrencies.
Collectively, these aspects imply that the $0.40 mark is a substantial “drop” reinforced by ‘whale’ involvement, however, it carries a clear caution: ‘proceed with buying at your own discretion’.
If you’re ‘long’ on DOGE, staying updated with these evolving datasets is crucial. This isn’t over yet, and another risk might be just around the corner.
Source : Coinglass
Following its drop from $0.48, accompanied by whales’ withdrawal, the Open Interest (OI) in the perpetual market has plummeted from a record-breaking peak of $4.45 billion to $3.16 billion. This represents a significant decrease of approximately 29% within just a few days.
In many instances when a market ‘dips,’ or experiences a downturn, both retail and institutional investors tend to seize the opportunity and buy large quantities of Dogecoin (DOGE) tokens, anticipating significant returns.
Read Dogecoin [DOGE] Price Prediction 2024-2025
Given this situation, some futures traders decided to invest in rising DOGE prices (buying DOGE). Yet, it’s important to note that large investors controlling significant shares could significantly influence the market’s direction.
The rapid selling caused a significant decrease (11%) in the price, compelling those with long-term investment positions to withdraw, which further exacerbated the downward trend.
Watching whales prepare for another dive, vigilance is crucial. If Dogecoin fails to surpass $0.50, a similar trend could emerge. Stay alert about these significant market participants in the upcoming days – this game may not be finished just yet.
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2024-12-15 02:16