Dogecoin Whales on the Move: Is DOGE Primed for a New Bull Run?

TL;DR

• Large investors have accumulated more than 1.8 billion DOGE in the past 36 hours, reducing circulating supply, which could potentially have a positive impact on the price.
• Trump’s pro-crypto stance and Musk’s role in the D.O.G.E. department could boost the meme coin’s popularity and value even more in the near future.

Big DOGE Move Incoming?

The past few days have been more than eventful for the cryptocurrency market, which experienced enhanced turbulence. The price of Bitcoin (BTC), for instance, soared above $106,000 on January 19. Shortly after, it plummeted below $100K, only to explode to a new all-time high of almost $110,000 just minutes ago.

The enhanced volatility, which is most likely caused by Donald Trump’s upcoming inauguration today, has also affected Dogecoin (DOGE). The biggest meme coin in terms of market capitalization has been hovering between $0.34 and $0.43 in the last three days, currently worth around $0.38 (per CoinGecko’s data).

DOGE Price, Source: CoinGecko

One important element signaling that DOGE could be gearing for a substantial rally in the short term is the whale activity. X user Ali Martinez revealed that such large investors had accumulated 1.83 billion tokens in the past 36 hours (equaling over $700 million at ongoing rates).

The development reduces the circulating supply of the asset, potentially leading to a price increase (assuming demand stays the same or heads north). It can also encourage smaller players to enter the ecosystem, thus triggering an additional flow of capital. 

The Possible Trump/Musk Effect?

Another major factor signaling good days ahead for DOGE bulls is Donald Trump’s incoming reign as America’s 47th President. During his presidential campaign, the Republican presented himself as the right choice for pro-crypto voters and made multiple promises that could help the industry flourish in the near future. 

Additionally, recent reports have indicated that Trump “plans to release an executive order elevating crypto as a policy priority and giving industry insiders a voice within his administration.” 

Elon Musk’s involvement in politics should also be mentioned. Tesla’s boss has been part of Trump’s inner cycle for the past several months and will even spearhead an upcoming division called Department of Government Efficiency (D.O.G.E.).

The entity’s main goal will be to reduce bureaucracy, get rid of unnecessary regulations, and eliminate wasteful spending within the American government. DOGE proponents, though, have noticed the obvious match between the abbreviation of their favorite cryptocurrency and the agency, predicting that it might positively impact the meme coin. 

After all, Musk is a huge advocate of Dogecoin, often praising its merits and endorsing it on X. We have yet to see whether he will announce any big news for the DOGE community while at the department’s helm.