Elon Musk may finally endorse Dogecoin as whales concentration woes are over

Dogecoin price has endured a healthy correction to a critical support level. Now, a confluence of bullish indications suggests that the DOGE might be due for new all-time highs.

The supply concentration issue garners a response from Robinhood

Tesla's CEO Elon Musk's tweet about Dogecoin's "supply concentration" generated panic around market participants, forcing some to market-sell their holdings. The sudden spike in downward pressure saw the meme coin take a 27% nosedive within hours.

When looking at IntoTheBlock's Whales index, Musk's concerns are indeed legit. Currently, roughly 46% of all DOGE's circulating supply is held by nine addresses. One particular entity has nearly 37 billion tokens.

Given the massive number of tokens these whales own, they have a disproportionate impact on prices because of their ability to coordinate buying and selling activities.

Dogecoin Whales Concentration

Elliptic, a blockchain data tracking company, came out to clear the air around Dogecoin's whales concentration. After an in-depth on-chain analysis, the firm concluded that the biggest whales on the network could be Robinhood. This financial services company purchased a large number of DOGE tokens before it started offering for trading to its users in June 2018. 

Robinhood put to rest Dogecoin's supply concentration woes by stating that it "does NOT currently invest in cryptocurrency or use any customer cryptocurrency" for its benefit. The brokerage firm also added,

We are not alone. Just like other crypto platforms, for operational security reasons and to protect customer privacy, we will not confirm which addresses do or do not belong to us.

Now that the biggest Dogecoin whale on the network has been revealed, Musk is an inch closer to endorse the meme token. If this were to happen, market participants would likely go into FOMO, pushing DOGE price to new record highs. 

Dogecoin price eyes a 40% upswing if crucial support holds

From a technical perspective, it seems like Dogecoin price is ready for a significant bullish impulse. The TD Sequential indicator presented a buy signal in the form of a green nine candlestick on DOGE's 12-hour chart right around the 61.80% Fibonacci retracement level, which traders regard as the "golden retracement zone." 

A spike in buying pressure could help validate the bullish outlook and lead to a one to four 12-hour candlesticks upswing towards the 23.60% Fibonacci retracement level at $0.072. A break of this resistance level could push Dogecoin price to new highs around $0.12.

DOGE/USDT 12-hour chart

Regardless, investors should note that a failure to hold above the 61.8% Fibonacci retracement level at $0.047 will invalidate the bullish thesis. In this case, Dogecoin price will likely pull back to the 78.6% Fibonacci retracement level at $0.036.