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Dogecoin, the OG of the meme coin industry, went parabolic on Thursday as whales continued to accumulate it. It soared to a high of $0.1200, its highest point since August 1 and almost 50% above its lowest point in August.
Whales are buying Dogecoin
There are three main reasons why Dogecoin price has surged hard in the past few weeks. First, the surge is because of its correlation with Bitcoin, which surged to $65,000 for the first time in two months. Bitcoin’s surge was also because of its correlation with global stocks, which have soared to their all-time high.
Second, the rally is because of the recent decision by the Federal Reserve interest rate decision, in which it slashed rates by 0.50% for the first time in over four years. Other central banks, most recently the Swiss National Bank, have embraced a dovish tone as their economies slow.
Third, data by Santiment shows that whales have been accumulating Dogecoin in the past two days. The company noted that these whales bought 1.4 billion coins valued at $140 million. In most cases, purchases by whales is one of the most popular catalysts for a cryptocurrency.
Additionally, its surge is mostly because other meme coins went parabolic. For example, Popcat, a relatively new Solana meme coin, surged and crossed the $1 billion market cap for the first time ever.
Bitcoin Dogs could rebound
A closer look at Dogecoin and other meme coins that have rebounded shows that they were in the deep red a few weeks ago.
Bitcoin Dogs, a relatively new cryptocurrency that raised over $15 million from investors remains significantly lower than its airdrop price.
This drop has made it one of the cheapest tokens in the market. Fortunately, it has a few catalysts that could push it higher in the near term.
First, the developers are making it rarer by reducing its supply. On Thursday, they noted that they implemented a big token burn, where some tokens in circulation are placed in a wallet that can never be accessed.
One of the best ways to think about a token burn is share buybacks, where companies repurchase their shares, boosting their earnings per share. The developers hope to implement more buybacks in the future.
Second, Bitcoin Dogs is hoping to create more utility for the token by launching a new game, where players will be paid using the coin. This game is expected to be launched either later this year or in 2025.
Therefore, there is a likelihood that Bitcoin Dogs will bounce back. Besides, oscillators like the Relative Strength Index (RSI) show that it has moved into an oversold level. It just needs one catalyst for that to happen. Learn more about Bitcoin Dogs here.
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