Dogecoin (DOGE-USD) has rallied 18% alongside a sharp uptick in whale activity, with major investors scooping up nearly 1 billion DOGE in just two days. According to crypto analyst Ali Martinez, this buying spree coincided with Dogecoin’s 20% price drop last week, falling from $0.396 to a low of $0.316. Despite the decline, whales appear to be betting on a rebound, hinting at optimism for the meme coin’s future.
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Elon Musk’s Influence Persists
The surge in buying came after Elon Musk hinted that cryptocurrency prices, including Dogecoin, could face headwinds if U.S. dollar inflation eases. As the head of the U.S. Department of Government Efficiency, Musk’s statements continue to ripple across the crypto market, influencing both institutional and retail sentiment.
Social Media Sentiment Backs the Bulls
Meanwhile, social media chatter has turned notably bullish for Dogecoin, Solana (SOL-USD), and Cardano (ADA-USD), according to Santiment. Dogecoin’s positive sentiment outweighs negative posts by a ratio of 2:1, reflecting growing confidence among traders. However, analysts caution that excessive hype could hinder price gains.
At the time of writing, DOGE is sitting at $0.3821.
