Dogecoin Whales Invest $33.9M as Elon Musk Announces New Product

Dogecoin Price Analysis

Dogecoin price grazed the $0.10 mark on Sept 5, climbing 8% within the daily timeframe. Critical market data suggests the DOGE rally may be linked to investors’ positive reaction to Elon Musk’s latest announcement of a new video streaming app for X (formerly Twitter).

Dogecoin Price Surges 8% Amid Elon Musk’s Latest Announcement

Elon Musk has been a major proponent and self-proclaimed fan of the Dogecoin ecosystem. Over the years, the billionaire entrepreneur has made several bullish comments supporting the DOGE community.

Unsurprisingly, Musk’s public comments and strategic dealings have become highly influential on Dogecoin price action.

Elon Musk’s influence on Dogecoin price action was once again evident this week. On Sept 3, Musk interrupted a series of politically charged posts to confirm the launch of X TV, a new video streaming platform.

According to Musk’s statement, the application is aimed at refocusing X (formerly Twitter) as a video-first social network.

Notably, within 24 hours of the announcement, DOGE price surged by more than 8%, reaching the $0.10 mark as of writing on Sept 5

With a competitive revenue-sharing package for creators, X (formerly Twitter) now seeks to capture market share from platforms like YouTube and TikTok. Recall that last year, Elon Musk included cryptocurrency in his plans.

In March, 2024, FXEmpire reported that X Payments LLC, the arm of X responsible for driving peer-to-peer payments, secured money licenses in New Mexico, Oregon, and Illinois.

This event fueled speculation that Musk could integrate DOGE into the platform’s payment service, potentially supercharging the demand for and popularity of Dogecoin globally.

Between March 20 and March 29, DOGE price soared 87%, reaching a 2024 peak of $0.23 within just 8 days after Musk confirmed the payments license approvals.

If this historical pattern repeats, Dogecoin’s 8% price rally toward $0.10 on Thursday, Sept 5, could evolve into another prolonged breakout phase in the coming days.

Dogecoin Whales Invested $33.9M Following X.TV Launch

Elon Musk’s influence on Dogecoin price movements has been well-documented over the years. Unsurprisingly, savvy investors are now looking time their trades and modify their strategies in response to Elon Musk-related headlines.

On-chain data suggests that Dogecoin whale investors instantly made strategic moves to front-run another potential DOGE price upswing after Elon Musk’s Latest X TV launch announcement on Sept 3.

Indicating this,  IntoTheBlock’s Large Holder Netflow chart below tracks the daily net-investments from large investors’ wallets holding at least 141M DOGE (0.1% of total Dogecoin circulation supply).

The chart above vividly depicts that Dogecoin whales had only made minimal investments since Aug 25. Daily large holder inflows trended flat, below 10 million DOGE, over the past 10 trading days dating back to Aug 25.

However, as indicated in the chart, large holder inflows spiked to 343.17 million DOGE on Sept 5. Valued at the current price of around $0.10 per coin, Dogecoin whales effectively made fresh investments of $33.9 million within 24 hours of Musk’s latest statement.

Typically, such sudden spikes in whale demand for an asset can be bullish for two main reasons. Firstly, it reflects growing institutional interest, which often leads to increased demand. Secondly, it reduces the available supply on exchanges, creating scarcity and potentially driving the price higher.

This partly explains why Dogecoin surged 8% on Sept 5, while more prominent coins, including Bitcoin (BTC) and Ethereum (ETH), both struggled to gain traction.

Looking ahead, strategic investors will keep an eye on the upcoming U.S. Non-Farm Payroll data as another potential bullish catalyst. A second consecutive dovish NFP report could pressure the U.S. Fed to make its first rate cut since 2020, which may boost investors’ risk appetite for Dogecoin and other crypto assets.

DOGE Price Forecast: Bulls Set To Flip $0.10 Resistance

Based on recent on-chain insights, Dogecoin could be gearing up for a bullish reversal after Elon Musk’s latest product launch announcement. Technical indicators also support this optimistic DOGE price outlook.

First, the Ichimoku Clod, a multifaceted indicator used to identify support and resistance, trend direction, and momentum, shows that while DOGE is currently approaching key resistance at $0.10373.

If Dogecoin price can maintain its current short-term support around the $0.0978 convergence zone, a bullish breakout could be triggered, potentially propelling DOGE toward the next target at $0.11207.

Additionally, the True Strength Index (TSI), a momentum oscillator that measures trend strength and direction, is currently in negative territory, with the blue line at -13.92 below the signal line at -12.18.

While this suggests lingering bearish momentum, any upward crossover of the TSI above the signal line could signal a fresh bullish wave. Historically, such crossovers have led to notable price rallies, and with DOGE’s recent 8% price surge on Sept 5, the momentum could soon shift in favor of the bulls.

For now, the $0.097 level is acting as strong support, and if bulls can defend this zone and break through the $0.10373 resistance, DOGE could be primed for a more extended rally, potentially revisiting the $0.11207 region.

If the NFP data slated for Sept 6 comes in dovish, buyers step in, and potentially drive the rally further towards the $0.15 level.