Dogecoin ($DOGE) Whale Activity Surges Ahead of Expected 'Rage Pump'
TL;DR Whale activity on the Dogecoin network has recently surged to its highest level since November 27, as the number of active addresses on the network hit its largest 2-day stretch since early November. This surge in activity comes after reports suggested Elon Musk wants Twitter to offer a payments service that would include cryptocurrencies, and is supported by pseudonymous cryptocurrency analysts such as Smart Contractor and Rekt Capital who believe DOGE could surge above current levels.
Whale activity on the Dogecoin ($DOGE) network has recently exploded, with whale transactions spiking to their highest level since November 27, at a time in which the number of active addresses on the network hit its largest 2-day stretch since early November.
According to data from on-chain analytics from Santiment, there were 523 transactions on the Dogecoin blockchain above $100,000 at the end of January, while the number of daily active addresses on the network surged to 86,400.
🐶 #Dogecoin has broken out with major whale transactions today, easily the highest of the year, going along with address activity spiking. The polarizing coin is up +40% since December 29th, and is back above $0.095 for the first time since December 10th. https://t.co/NjeLyhFKe2 pic.twitter.com/AWEOtqD1ax — Santiment (@santimentfeed) January 31, 2023
The large whale activity surge came at a time in which a popular cryptocurrency analyst known as Smart Contractor on social media said that while the DOGE/USD trading pair looks like a “hot mess,” the DOGE/BTC pair “looks gearing up for a revenge pump of probably 100% or more.
Dogecoin’s price has notably recently surged after a report suggested Elon Musk wants Twitter to offer a payments service that would include cryptocurrencies. Musk is a well-known $DOGE supporter who recently put pressure on fast-food giant McDonald’s to accept it as a payment method.
Elon Musk’s original offer to McDonald’s came after a cryptocurrency market sell-off that had seen McDonald’s tease the cryptocurrency community with a tweet asking people who run crypto Twitter accounts how they are doing after the sell-off.
Responding to a tweet from the official account of McDonald’s, which had been inactive for a few months, a user asked Musk whether his offer to eat a Happy Meal on TV if the fast-food chain accepts $DOGE as a payment method was still standing, to which Musk responded positively.
Earlier, another pseudonymous cryptocurrency analyst, Rekt Capital, suggested DOGE could see a breakout rally that would see it rise above its current levels after it underperformed other meme-inspired cryptocurrencies in the cryptocurrency space’s latest rise.
Rekt Capital shared in a tweet with their over 330,000 followers that DOGE was “now testing the top of the Falling Wedge trying to challenge for a breakout.”
It’s worth noting Smart Contracter is famous for, in June 2018, predicting the bear market that was seeing the price of bitcoin drop from a then-all-time high near $20,000 would end with the coin trading at $3,200. The prediction was nearly accurate, as BTC hit the target in December of that year.