The crypto market has quite literally crashed today. Everything is red as investors steer clear of risk assets for now. But despite this, it seems Dogecoin is attracting a lot of whale buyers. In fact, there is an emerging pattern of buying DOGE dips among large crypto wallets. Here is what you need to know:
Whale accounts have purchased over 400 million Dogecoins worth $31 million in recent months
Also, thousands of large wallets on the Binance Smart Chain hold DOGE in their portfolio
This comes even as the meme coin dips sharply.
Data Source: TradingView
Why are Whales buying Dogecoin?
Under such market conditions, it doesn’t make sense to buy high volatile coins like DOGE. But for most large wallet holders, it seems the DOGE dip is just the perfect chance to get the coin cheaply. In fact, analysts believe that DOGE will continue to slump in the near term.
The coin has tanked by 20% over the last 24 hours alone and is currently hovering above a crucial $0.054 support zone. It is highly likely that the coin will fall below this zone and head into a downward surge.
DOGE has also lost nearly 95% of its value from its all-time high. But despite this, we are likely going to see a change in investor sentiment in the medium term. As such, whales are ready to be patient and ride out the bleeding right now with the hopes of a future major rally.
Should you follow whale money?
It is often a good idea to follow large wallets in your investments. But on DOGE, things are a bit complicated. For example, we are now in the middle of a very volatile period in the crypto industry.
The value of many coins is very unpredictable. For this reason, buying DOGE now could expose you to a huge downside if the market fails to snap out of the current downtrend.