Dogecoin is currently at a critical price junction which may determine its price trajectory within the short term. Although the meme coin has witnessed a major price drop prior to now seven days, recent whale activity suggests that the tide might change soon. Notably, large holders of DOGE have been benefiting from the value drop to build up tens of millions of DOGE. Per data from Santiment, an on-chain analytics platform, addresses holding between 10 million and 100 million Dogecoins have collectively accrued greater than $129 million price of DOGE prior to now seven days.
Dogecoin Whales Accumulate DOGE
In accordance with the on-chain data from Santiment, whales have increased their accumulation prior to now week despite the price decline for the meme coin. Remarkably, these whale addresses have bought over 900 million tokens in seven days, suggesting their faith in DOGE despite the value downturn.
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Consequently, on-chain data shows the variety of coins owned by this cohort of traders has increased by roughly 5% to a collective 18 billion tokens.
Source: X
A have a look at the chart above reveals that the collective holdings of those whale wallets have generally been on an uptick because the last week of March. During times of price increases, the buildup has typically exhibited an upward tendency and remained stable during times of price drops. Nevertheless, the recent accumulation is different since it comes alongside a corresponding price decrease, showing a special strategy from the whale wallets.
Interestingly, similar data from IntoTheBlock suggests the same increase in activity on DOGE alongside the whale accumulation. This uptick in activity saw around 9.29 billion DOGE tokens traded prior to now 24 hours. Moreover, 1,500 transactions were concluded prior to now 24 hours, implying traders are actively exchanging DOGE.
Source: X
How Whale Transactions Impact DOGE Price
Considering its meme coin status, Dogecoin is highly influenced by sentiment amongst traders and particularly huge investors. These big investors, generally known as “whales” in crypto lingo, can have a major impact on Dogecoin’s price after they move their funds around. Their buying activity triggers bullish momentum by pumping up demand, which drives the value higher as other traders follow their lead.
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Interestingly, this recent whale accumulation comes as a much-needed catalyst for bullish momentum. On the time of writing, DOGE is trading at $0.1428 and has been down by 11.29% prior to now seven days. Nevertheless, this decline appears to be slowing down, with DOGE only registering a 0.6% loss prior to now 24 hours. In accordance with a crypto analyst, this spiral towards $0.14 is forming an vital generational bottom for DOGE.
Doge price drops | Source: DOGEUSDT on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com