6 months ago
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Dogecoin holders are accumulating DOGE tokens amidst the recent price dip from $0.1686 to $0.1423. DOGE recently went on a price surge to cross above the $0.168 price level on May 6 to push 5.21 million addresses into profitability. However, the cryptocurrency reversed and went on a little correction throughout May 7. According to on-chain data from Santiment, large DOGE holders capitalized on this drop and added around 265.86 million DOGE tokens to their wallets.
Whales Accumulating DOGE
According to data from Santiment, an on-chain analytics platform, DOGE addresses holding between 100 million to 1 billion DOGE recently saw their cumulative holdings increase by 1% on May 7 to reach 21% of the total supply. Interestingly, the number of tokens held by this cohort of traders increased by 265.86 million DOGE, worth approximately $41.2 million. This increase, when compared to their holdings a day before, indicated a notable change from a previous 342 million DOGE outflow from large holders.
Recent on-chain data suggests that this accumulation from exchanges is still ongoing. Interestingly, data from Whale Alerts indicated an example of an accumulation of 120 million DOGE tokens worth $18 million from crypto exchange Robinhood in the last few hours. This continued accumulation suggests that a few whales are still in bullish sentiment for DOGE and are positioning themselves for when their bullish outlook eventually materializes.
Why Does This Matter For Dogecoin?
Whale movement and sentiment are essential for any cryptocurrency, particularly for a meme token like Dogecoin, whose value is mostly driven by hype and market sentiment and not by a demand for its utility. These whales typically move the market, and an accumulation or selloff from a few large traders could change the sentiment of other investors.
At the time of writing, DOGE is trading at $0.1516. The price correction between May 6 and May 9 seems to have ended after bouncing off at the $0.143 level. Currently, DOGE is up by 3% in the past 24 hours and 14% in the past seven days. Consequently, this shows that the accumulation may have contributed to a bullish effect on the price of DOGE.
On a larger timeframe, the $0.143 price level is a strong support level for DOGE. The recent bounce could be a starting point for the next leg up to new highs this month. A continued accumulation from the bulls could send the price of Dogecoin across resistances at $0.16 and $0.20. This, in turn, could lead to DOGE finally pumping above its current all-time high and eventually reaching $1. For this to happen, many bullish factors apart from accumulation need to be put in place. On the other hand, a bearish reversal could see DOGE falling to the next support at $0.13.
According to Santiment, most of the attention surrounding meme coins is going into TRUMP, TURBO, PONKE, and MYRO.
Featured image from Markets.com, chart from Tradingview.com
