Dogecoin Price Rises 7% Following Whale Accumulation of 590 Million DOGE

Dogecoin (DOGE) price has experienced a 7% price surge within the past 24 hours, coinciding with significant whale activity in the cryptocurrency market.

Reports indicate that large holders, often referred to as whales, accumulated an additional 590 million DOGE during this period. This development has sparked heightened interest in the market, reflected by increased trading volumes and derivative activity.

Whale Accumulation Boosts Market Sentiment

According to data from on-chain analytics firm Santiment, whale addresses holding between 10 million and 1 billion DOGE purchased a total of 590 million DOGE in a single day. This is a significant rise in holdings, suggesting that large investors are betting on the future of Dogecoin.

The accumulation activity correlates with the whale wallet, which has shown recent growth as presented by the analysts. On the same chart that Santiment uses to track whale wallets, there is a gray area that revealed a significant concentration of buying at this time.

In the past, whale activity of such magnitude has affected market conditions and has sometimes resulted in price stabilization or increase.

Dogecoin Price Performance and Market Activity

Dogecoin’s price rose 7% to $0.3673 by the end of January 21, having earlier traded as high as $0.40 before retracing slightly. Nevertheless, the digital asset managed to hold higher ground than its initial price of $0.3422 and traded between $0.36 and $0.38 for most part of the day.

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Market capitalization also followed the price rise and was at $54.26 billion, a 7.36% growth from the previous day. The trading activity increased by 13.98% as the market cap reached $8.46 billion, indicating that both small and big investors are eager to trade Dogecoin.

A high trading volume, particulary at the onset of the rally, indicates a high level of buying pressure which can be associated with whale purchases as well as mainstream market participation.

The recently launched US Department of Government Efficiency(D.O.G.E) under the leadership of Elon Musk also contributed to giving a boost to the Dogecoin.

The department’s website featured the Dogecoin logo, which raised eyebrows among investors and the crypto community. This action not only attracted the attention of the audience on the social networks but also led to the Dogecoin price increase of 15% for the minutes following the logo display.

Derivative Metrics Indicate Growing Interest

For Dogecoin, OI in the derivatives market hit $2 billion indicating a 6.26% upswing in the last 24 hours.

This parameter shows the total asset value of all active perpetual contracts, indicating an increase in the trading interest in DOGE. The increase in open interest indicates that the traders are preparing for price fluctuations, which in turn may affect the cryptocurrency’s volatility.

The breakdown of Open Interest by exchange also shows that the largest is Binance at $910 million, followed by Bybit at $743 million and then OKX at $334.5 million. Combined, these platforms form a major part of DOGE derivative trading.

Specifically, one can see that Dogecoin occupies a significant share of 2.74% in the total crypto market open interest and 2.87% in the perpetual contracts, which proves Dogecoin’s role among altcoins.