While the recent plunge in Dogecoin's price is expected to trigger a mass liquidation, Dogecoin Whales see the decline as a golden opportunity. The whales saw the decline as an opportunity to enter the market cheaply and are now buying Dogecoin in large quantities, with new trading records showing purchases of 270 million.

The recent decline in Dogecoin's price has prompted large investors, often referred to as "whales," to hoard more tokens. ** Cryptocurrency analyst Ali Martinez disclosed in an X (formerly Twitter) post on Tuesday that Dogecoin whales have bought up to 270 million DOGE tokens in the past five days.

The massive purchase of 270 million DOGE is part of a general trend of accumulation throughout the meme coin network. Since November, Martinez has recorded whales buying hundreds of millions of DOGE in a downtrend.

On Dec. 21, the analyst revealed that Dogecoin whales bought 250 million DOGE during the recent market downturn. The bold move comes as investors see DOGE's decline as a favorable entry point, a behavior often associated with more well-known players buying tokens at lower prices in the hope of making long-term gains.

The recent frenzied buying of DOGE by huge investors may indicate that investors are confident in the future of the token. Martinez also expressed optimism about the price outlook for the token, highlighting in a previous X post that DOGE could experience another parabolic rise to an all-time high of $20.

While bullish sentiment on Dogecoin prices remains strong, Dogecoin Whales are taking advantage of current market conditions and price declines to increase their holdings in preparation for a potential rally. Dogecoin is currently priced at $0.33, and the 270 million Dogecoin recently purchased are worth about $89 million.

Cryptocurrency analyst Trader Tardigrade has provided a chart that shows a recurring historical trend pattern in the price action of Dogecoin. Analysts believe that a repetition of this historical trend could trigger a parabolic rally in Dogecoin.

The red curve in the chart highlights the rounded consolidation phases of Dogecoin in different cycles, while the green upline highlights the steady bullish trend. Each consolidation period in the chart resulted in a significant rally in which the price of Dogecoin exploded at the end of the trend.

Based on repeated historical patterns, DOGE appears to be exiting its recent consolidation phase, suggesting that a potential breakout may be just around the corner. Trader Tardigrade predicted that a breakout could trigger a price rise of up to $5 to a new all-time high for DOGE.

As of this writing, Dogecoin is trading at $0.33, reflecting a 3.5% increase over the past 24 hours. A surge to $5 would require the meme to rise 1,415% from its current price in order to achieve that stunning increase.