On-chain data shows the Dogecoin whales have gone on a huge accumulation spree during the past week, a sign that can be bullish for DOGE.
Dogecoin Whales Have Expanded Their Holdings In Past Week
In a new post on X, analyst Ali Martinez has discussed about the latest trend in the Dogecoin supply held by some key investors. The indicator of relevance here is the “Supply Distribution” from the on-chain analytics firm Santiment, which tells us about the total number of coins that the investors of a particular wallet group are holding right now.
Holders or addresses are divided into these cohorts based on the number of coins that they are carrying in their balance. The 1 to 10 coins group, for instance, includes all investors who own between 1 and 10 tokens of the memecoin.
In the context of the current topic, the cohort of interest is the 1 million to 10 million coins one. At the current exchange rate, the lower bound of the range converts to $180,000 and the upper one to $1.8 million.
While this group certainly doesn’t cover the largest of the addresses on the network, it still includes whales that could be considered key for the cryptocurrency. As such, the behavior of this cohort can be worth keeping an eye on.
Here is the chart shared by the analyst that shows how the supply held by this Dogecoin investor group has changed during the last couple of months:
Looks like the value of the metric has been going up in recent days | Source: @ali_charts on X
As displayed in the above graph, the Dogecoin Supply Distribution of the 1 million to 10 million coins group observed a drop around a week or so back, implying these large investors took part in some selling.
This selling coincided with the recovery rally in DOGE’s price, so it would seem that the motive behind it may have been profit-taking. In the past few days, though, as the memecoin’s surge has stalled, these investors have reversed their trajectory and loaded up their wallets again.
In total, these Dogecoin whales have purchased about 100 million coins ($18 million) over the past week. Following this shopping spree, the supply held by this cohort has already surpassed the level from before the earlier selloff.
The accumulation from the large holders can be a bullish sign for DOGE’s price. The Supply Distribution of the group can be to monitor in the coming days, however, as sometimes it doesn’t take much for sentiment to flip in the sector. In the scenario that the indicator reverses its trend again, the memecoin could face a bearish outcome instead.
DOGE Price
Dogecoin declined under the $0.167 mark yesterday, but it appears the coin has quickly bounced back up as its price is now trading around $0.180.
The trend in the DOGE price over the last five days | Source: DOGEUSDT on TradingView
