Dogecoin Whales Rouse From Slumber With Almost 1,000% Surge In Activity, Will Price Follow?
Dogecoin enthusiasts are diligently working to shift the cryptocurrency’s trajectory after several weeks of stagnation and uninspiring price movements. Recent on-chain data indicates that significant holders of Dogecoin are successfully extending a promising price rally observed last week. Insights from IntoTheBlock (ITB) demonstrate that both large holder netflow and exchange netflow are experiencing substantial upticks, signaling heightened activity and accumulation among DOGE whales.
Dogecoin Whales Increase Activity
IntoTheBlock’s key indicator of whale activity, the “Large Holder Netflow,” has recently transitioned from negative to positive readings. This metric tracks the difference between the DOGE tokens entering and leaving addresses that hold at least 0.1% of the circulating supply. A higher inflow compared to outflow results in a positive netflow, often interpreted as a bullish sign for the cryptocurrency.
This trend suggests that whales are actively accumulating DOGE. Conversely, negative readings indicate that outflows are exceeding inflows into whale addresses, which can be a cause for concern regarding the price outlook. Recent ITB data reveals a dramatic surge in netflow, jumping from a negative -2.23 million DOGE to a remarkable 20.66 million DOGE within just 24 hours. This 1000% increase indicates a significant rise in whale activity during this period.
Although this level of netflow may seem modest compared to the massive DOGE trading volumes seen during previous market surges, it represents a crucial initial step following an extended period of inactivity for the popular meme coin.
Decline in Exchange Balances
Interestingly, the uptick in DOGE whale activity aligns with a notable decline in balances across various cryptocurrency exchanges. Specifically, the aggregated exchange netflow plummeted from 28.25 million DOGE to a negative -43 million DOGE over the same 24-hour period. This dual trend of increasing whale accumulation coupled with decreasing exchange balances suggests that large holders are moving their assets off exchanges, potentially in anticipation of a bullish rally.
DOGE Price Outlook
At the time of writing, DOGE is trading at $0.1086, reflecting a 1.96% increase in the past 24 hours and a 7.78% rise over the past seven days. Despite these gains, DOGE has yet to break above the $0.11 mark, a price point that has proven challenging to surpass since early September.
Technical analysis indicates that $0.11 is a critical price point for a potential bullish rally. If DOGE can manage to exceed this level, it may trigger further accumulation from large holders and significantly influence its price movement for the remainder of the year.
In summary, the recent increase in whale activity and the corresponding decline in exchange balances are positive indicators for Dogecoin’s market outlook. While the price has shown some upward movement, breaking through the crucial $0.11 mark remains essential for a sustained bullish trend. As DOGE continues to garner attention and accumulation from large holders, the cryptocurrency may be poised for significant growth in the near future.
