Is Dogecoin only starting its big rally after 70% weekly gains?

Dogecoin’s (DOGE) price has experienced a significant surge of approximately 70% this week, fueled by a bullish trend across the cryptocurrency market. This momentum hints at further potential for gains in March, owing to a mix of technical and fundamental indicators.

Dogecoin whales accumulate

Dogecoin’s recent price surge comes amid an increase in DOGE holdings among its richest investors, also known as “whales.” For instance, the number of addresses holding more than 100,000 DOGE tokens has risen 0.7% since the year’s beginning.

Dogecoin addresses with a balance greater than 100K DOGE. Source: Messari

At the same time, the number of entities with a balance of over 1 million DOGE has witnessed a slight dip after Feb. 12.

Dogecoin addresses with balance greater than 1M DOGE. Source: Messari 

Given the substantial holdings, these addresses likely represent exchanges, suggesting traders have been beginning to prefer to retain DOGE rather than engage in active trading. This behavior signals strong accumulation.

Whale Alert’s tweet about a large DOGE transfer from Robinhood. Source: X

Memecoin mania ahead of Bitcoin halving

Dogecoin’s price boom appears ahead of the fourth Bitcoin halving scheduled for April 19, 2024. Interestingly, this price rally is akin to similar upside moves before previous Bitcoin halving events in May 2020 and July 2016.

Notably, DOGE price surged 200% ahead of the first Bitcoin halving, and by approximately 50% ahead of the second, as shown below.

DOGE/USD weekly price chart. Source: TradingView

Generally, traders tend to seek alternative investments like memecoins for higher short-term gains, anticipating that the halving will boost the overall market. This behavior is driven by speculation and the desire to capitalize on the increased market activity associated with Bitcoin’s supply shock.

Related: Solana rockets 13% to new yearly high, led by WIF memecoin frenzy

Like Dogecoin, other top memecoins, including Shiba Inu (SHIB), Pepe (PEPE), and Bonk (BONK), have seen substantial gains in the days leading up to the Bitcoin halving.

Memecoins’ performances on hourly, 24-hour, and 7-day timeframe…...

Source

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