Dogecoin has not disappointed its investors of late. The meme coin leader reacted to Bitcoin’s move above $40K by registering a 26% hike between 5-7 February. Although the price charts captured an ongoing correction, a BNB whale wasn’t shy from buying the dip.
Data from Whale alerts revealed that one of the top BSC wallets purchased 8,999,983 DOGE, worth $1.47 Million at the time of transaction. Based on the recorded current value, each DOGE token was bought at an average price of $0.163.
The purchase might come as a surprise to many short-term retail traders. Dogecoin was due for profit-taking after its recent rally and the 4-hour chart captured a line of red candles. A larger downtrend was also active, with DOGE forming just one higher high since October last year.
Furthermore, data from LunarCrash revealed that Dogecoin’s weekly social volume was down by 19%, while its social dominance declined to 44%. For a token that is severely impacted by social media mentions and references, such statistics were not ideal for an extended Dogecoin rally.
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Although Dogecoin’s near-term was uncertain, whales are most popular for playing the long game on their crypto investments. In this regard, the whale purchase comes during an important time when Dogecoin is looking to transition to a proof-of-stake network. In a recent interview, Ethereum co-founder Vitalik Buterin even suggested an ETH-DOGE bridge to increase transaction speeds on the Dogecoin blockchain. On the adoption front, Dogecoin was riding a high after Tesla CEO Elon Musk made DOGE a viable payment option for Tesla merchandise.
New projects along with some planned changes to the Dogecoin network could lead to a renewed price discovery in 2022. If so, any Dogecoin purchases made would end up becoming profitable, even if the alt is not bought during local bottoms. At the time of writing, DOGE traded at $0.156, down by 2% over the last 24 hours.