Dogecoin (DOGE) bulls are recording massive purchases amid sideways trading, signaling an uptrend in the coming months. The asset’s on-chain factors are flipping green alongside top crypto on the back of institutional demand and Elon Musk’s influence. This scenario is similar to the 2021 bull run, which saw the asset soar to an all-time high.
Data from crypto analytics from Messari shows that wallets with 1 million DOGE have amassed over 130 billion tokens. This all-time high acquisition indicates increased whale participation in the ecosystem as market confidence ticked upward.
A similar situation occurred in the 2021 bull run, as whale addresses began accumulating assets, reaching as high as 110 billion tokens. Like in 2021, Elon Musk’s presence is also at the center of this rally. The billionaire’s famous appearance on Saturday Night Live was a huge development for Dogecoin at the time, with bulls projecting more adoption for the asset.
After Donald Trump’s victory, the DOGE price surged alongside the wider market and Elon Musk’s participation. Musk’s nomination as joint head of the Department of Government Efficiency (DOGE) led to more inflow to Dogecoin. The assets have been up 220% since the November polls, which has attracted bullish interest.
A key factor for the DOGE price rise is the possible turn to the altcoin season and meme coin swings. Recent flows into the asset could ignite a similar run in previous bull cycles.
On-chain Similarities Attracts Whales
Dogecoin’s Relative Strength Index (RSI) has soared above 70 into the overbought zone, often indicating a retracement. However, in 2021, a similar metric led to continuous bull pressure. While the RSI led to an upward swing three years ago, many remain skeptical about present market conditions.
Furthermore, recent price consolidations after previous highs point to the last bull phase. Growth after the US election has stalled for most meme coins, and prices have begun a consolidation phase. A series of outflows mark this as volatility continues. However, the meme coin consolidation is usually followed by a breakout, leading to a frenzy as holders look to pick up huge gains.
At press time, Dogecoin trades at $0.40, a 0.2% drop in the last 24 hours, taking weekly exits to 7.2%. Meanwhile, the total meme coin market cap is down 3%, with the market cap at $132.4 billion.
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