TL;DR
- Dogecoin (DOGE) has gained momentum recently due to speculation around a potential spot ETF filing and substantial whale purchases, despite a recent price correction.
- Speculation about a Dogecoin spot ETF filing has been fueled by comments from Bloomberg senior ETF analyst Eric Balchunas.
- Whale activity has surged, with crypto whales purchasing 250 million DOGE worth over $77 million during a market dip, indicating strong confidence in Dogecoin’s long-term potential.
Dogecoin (DOGE) has been gaining significant momentum recently, driven by speculation around a potential spot ETF filing and substantial whale purchases. Despite a recent price correction, the cryptocurrency community remains optimistic about DOGE’s future prospects, buoyed by these developments.
Speculation Around Spot ETF Filing
The speculation around a potential Dogecoin spot ETF filing has been fueled by comments from Bloomberg senior ETF analyst Eric Balchunas. Balchunas suggested that the chances of a Dogecoin ETF filing could increase under the administration of President-elect Donald Trump.
With the possible appointment of Paul Atkins as SEC Chair, the regulatory environment for crypto ETFs is expected to become more favorable. This has led to heightened anticipation within the crypto community, as a Dogecoin ETF could attract significant institutional investment and further legitimize the cryptocurrency.
Whale Purchases Signal Confidence
In addition to the ETF speculation, Dogecoin has seen a surge in whale activity. On-chain data from Santiment reveals that crypto whales recently purchased 250 million DOGE, worth over $77 million, during a market dip.
This accumulation by large holders, those with 1 million to 10 million DOGE, has brought their total holdings to over 10.7 billion DOGE, representing nearly 1% of the total circulating supply. Such significant purchases during a price decline indicate strong confidence in Dogecoin’s long-term potential.
Market Reactions and Future Prospects
Dogecoin’s price has been in a mid-term correction after significant gains over the past two months. The memecoin, with a market valuation of about $47 billion and an average daily trading volume of $5 billion, is currently testing support near the 0.5 Fibonacci retracement level.
Analysts believe this support could trigger a major rebound, with the Relative Strength Index (RSI) recently climbing above 85% for the first time since mid-2021, signaling strong bullish momentum. The combination of speculation around a potential spot ETF filing and substantial whale purchases has positioned Dogecoin for a potential resurgence.
As the market awaits further developments, the cryptocurrency community remains optimistic about DOGE’s future. With strong community backing and increasing institutional interest, Dogecoin could be poised for significant growth in the coming months.
