Dogecoin Price Forecast: Whales Buy $130M DOGE amid Bullish links to TESLA, GameStop

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%, on-chain data   suggest recent activities among whale investors could drive another leg-up. 

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.

Tesla sparked the first wave of the Dogecoin price rally, after the US carmaker announced the official adoption of DOGE as a valid payment method for its EVs.

Within 24 hours of Tesla’s announcement, Dogecoin price rose to a 20-day peak of  $0.17 on May 7. But, by May 12, 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 triggered 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 cummulative 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, the whale holdings has 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. Firstly, the positive sentiment surrounding whales bullish activity can encourage prospective buyers on the sidelines enter the fray.

But also, whales large volume purchases adds 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

Tesla’s adoption of DOGE as an official payment method, the resurgent Gamestop rally as well as 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.

But 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, bull will likely mount a solid support buy-wall at the $0.13 level.