Top holders of Dogecoin are becoming increasingly busy as a widely followed analyst claims that DOGE has printed its third clear monthly bullish morning star pattern. The overlap matters because the signal is not just technical: data on Santiment’s chain can be seen Whale activity and whale balance are increasing at the same time as DOGE rebounds from recent lows.
Santiment Intelligence says Dogecoin whales recorded their busiest day in six months, with 739 transfers worth at least $100,000 in one 24-hour period. The company also noted that DOGE’s largest portfolios continue to accumulate.
“On-chain data indicates that Dogecoin whales just hit their highest level of activity in 6 months, with 739 transfers worth over $100,000 in just 1 day. Additionally, of the 149 whale wallets containing at least 100 million Dogecoin, they now collectively have an all-time high of 108.52 billion DOGE (worth $11.6 billion). Price augment of 14% over the last 10 days is most likely not accidental.”
Dogecoin monthly chart signals a possible reversal
This is a chain background overlaps with the Dogecoin Cantonese Cat monthly chart marking what the analyst described as “the third clear monthly bullish morning star pattern for DOGE.”
The morning star is a three-candlestick reversal pattern. On the DOGE chart, the first candle is a red down candle (February), the second is a smaller candle (March) that reflects the swing after the oversold, and the third is a green candle (April) that closes above the middle of the first candle.
In cryptocurrency markets, where trading is continuous and customary equity gaps are less pure, analysts often focus more on structure: a acute monthly decline, a candle of compression or indecision, and then a sturdy recovery candle that shifts control back to the buyers.
The DOGE Cantonese Cat chart shows the previous two comparable monthly patterns. The first appeared from September to November 2017, after Dogecoin consolidated after a huge 2000% augment and just before the token’s main entry into the peak of the 2017-2018 cycle. The second came from September to November 2020, shortly before DOGE broke into its historic 2021 rally.
The analyst also used Bitcoin as a benchmark, explaining why he thinks this pattern is significant. On a separate monthly BTC chart, Cantonese Cat wrote that the bullish monthly morning star “marked 3 of 4 cycle lows,” “2 very important local lows,” and generated “2 false signals,” giving it a stated success rate of 71.4% for Bitcoin.
This comparison does not guarantee the same result for DOGE, but it presents the pattern as one that is treated as historically significant on the major cryptocurrency charts, and Bitcoin may be a leading indicator.
At press time, DOGE was trading at $0.10897.
Featured image created with DALL.E, chart from TradingView.com
