Meme cryptocurrency Dogecoin (DOGE) has recorded minor gains after extended months of trading in the red zone. The rally has resulted in optimism that the token will potentially rally to regain the highs of 2021, a factor that appears to attract increased whale activity in the asset.
In particular, as of October 4, Dogecoin recorded 85 whale transactions involving at least $100,000 while maintaining its position as the tenth largest cryptocurrency by market cap, on-chain data by Santiment indicates. DOGE whale transaction chart. Source: Santiment
At the same time, the excitement among whales was reflected in the assets price, which at some point on October 4 surged by 9% within a day. By press time, the asset was trading at $0.064, gaining almost 6% in the last 24 hours. DOGE 1-day price chart. Source: CoinMarketCap
With the DOGE whale funding rates spike, the metric highlights the possible course of the coins price action after months of suppressed interest triggered by the broader crypto market volatility. Impact of Musks Twitter deal on DOGE Related Italy grants regulatory approval to over 70 crypto firms without proper checks Bitcoin whales show rare signs of sustained accumulation – what it indicates? Bitcoin nearing a year-long downtrend on the weekly timeframe – what it means for BTC
It is worth pointing out that the latest rally emerged after Tesla (NASDAQ: TSLA) CEO Elon Musk reportedly confirmed he might be moving forward with finalizing the deal to purchase social media platform Twitter (NYSE: TWTR).
Notably, there exists a relationship between Musk and the Dogecoin community. Musk has previously expressed support for DOGE while working with core developers in a bid to build the meme coins viability.
Overall, Musks previous tweets about Dogecoin have sent the tokens price soaring. At the same time, if the deal goes through, it could be a bullish sentiment for Dogecoin. What next for DOGE?
In this case, days after Musk proposed buying Twitter in April, the SpaceX founder hinted that he might be adding DOGE as a payment method on the social media platform. Already, Twitter is enabling users to set non-fungible tokens (NFTs) as profile pictures, alongside using Bitcoin (BTC) and Ethereum (ETH) for the transaction to receive tips.
As whales take a position in DOGE, it is unclear if the Musk Twitter deal trigger will lead to a sustained rally in the token. Notably, Dogecoin has recently recorded sideways consolidation with resistance preventing upside bullish momentum.
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