Dogecoin (DOGE) whales, holding between 100 million to 1 billion coins, have been accumulating since May 28th. Santiment data reveals that these whales collectively purchased over $100 million worth of DOGE.
As a result of this accumulation, the supply held by this group increased from 20.69% to 21.40%, as reflected in their address balances. This surge in buying activity suggests potential positive implications for DOGE’s price.
Dogecoin Whales Accumulate $100M: Potential Impact on Price
The accumulation by Dogecoin (DOGE) whales, totaling over $100 million, signals increasing demand for the coin, potentially leading to a price increase. Currently, DOGE is trading at $0.15, showing sideways movement over the past week.
The uptick in whale accumulation suggests a possible shift in DOGE’s trajectory. If sustained, the cryptocurrency could break out, aiming to surpass $0.20 as it did in March.
Dogecoin-whale-accumulation. Source: Santiment
However, for this bullish scenario to materialize, DOGE would need validation from other metrics. Successful alignment of these metrics could propel the price higher.Conversely, failure to validate these metrics might cause DOGE to decline to around $0.12.
An increase in Mean Coin Age typically indicates movement of older coins between wallets, often suggesting distribution and potentially leading to lower prices.
Dogecoin On-Chain Metrics and Price Potential
From early April to May 29th, the 90-day Mean Coin Age (MCA) showed an increasing trend, indicating sell-offs by long-term holders that kept Dogecoin (DOGE) trading between $0.13 and $0.16.
However, over the past three days, the MCA has been declining, currently at 49.08, suggesting more holders are opting for self-custody over exchanges.
Dogecoin-circulation-and-old-coins. Source: Santiment
If this trend continues in the coming weeks, it could potentially trigger a parabolic move favoring bullish sentiment for DOGE. Additionally, on-chain data indicates a decrease in the number of Dogecoins circulating, with one-day circulation at 357.04 million coins, suggesting reduced selling pressure.
While low selling pressure doesn’t guarantee a breakout, combined signals from other metrics hint at a looming rally.
Currently, 83% of Dogecoin holders are in profit, according to IntoTheBlock. This percentage could rise further once DOGE begins its upward trajectory, possibly reaching 90% if or when a breakout occurs.
Important:Ā Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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