Baby Doge [BABYDOGE] has swiftly climbed the ranks of top gainers in the past 24 hours, experiencing a significant surge to reach a 10-month peak. The reasons behind this bullish momentum are quite intriguing.
On the morning of December 7th, Baby Doge holders found themselves in a favorable position as the token garnered attention from bullish investors.
In November, the memecoin made an unsuccessful attempt at a rally, causing it to relinquish its previous gains. It commenced December with a sluggish start.
Despite recent lackluster performance, Baby Doge showcased an impressive bullish run back in September.
In the last 24 hours, it soared by over 82%, indicating its ability to attract positive market sentiment.
The Impact of Elon Musk
The significant uptick in Baby Doge’s price was not arbitrary but rather seemed to be a reaction to a tweet by Tesla’s CEO, Elon Musk. It is well known that the market often responds strongly to his social media posts.
However, does this imply that Baby Doge’s upward potential is capped? Not necessarily. Notably, data from IntoTheBlock disclosed that whales currently hold 98.99% of the memecoin’s total circulating supply.
Interestingly, Baby Doge has not yet been listed on major exchanges such as Binance or Coinbase.
A potential future listing on these platforms could signify room for expansion, contingent upon robust demand from retail investors.
Addressing the retail side, the number of Baby Doge coin addresses has been steadily increasing since the beginning of 2024. Starting with just under 16,000 addresses holding a balance, this figure has now grown to 27,580.
Recent figures indicate a total of 33,680 addresses.
Additionally, Coinglass reported Baby Doge witnessing -$2.51 million in spot netflows over the last 24 hours, despite the notable price surge during the same period.
Meanwhile, Open Interest in the derivatives market reached $2.41 million.
This surge in short liquidations, peaking at $51,010, suggests that a significant portion of the demand originated from the derivatives segment.
These trends may hint at the possibility that the rally was sparked by substantial whale accumulation.
Given that whales retain control over most of the coin, there could be an expectation for increased demand from retail investors. Thus, investors should monitor potential listings on major exchanges closely.