Dogecoin, the widely recognized meme-inspired cryptocurrency, has recently gained attention again, despite the ongoing negative trends in the larger cryptocurrency market. Following an ambiguous post by billionaire Elon Musk on social media platform X (formerly Twitter), DOGE saw a slight increase in value, with some speculating he was hinting at the token.
Nevertheless, the overall sentiment around Dogecoin has remained relatively stable. Musk’s post did not generate enough enthusiasm to foster lasting hope, particularly among prominent investors. Significant owners of DOGE have been decreasing their holdings, coinciding with a rise in DOGE moving to cryptocurrency exchanges.
Analysis of Dogecoin Holdings by Whales
According to IntoTheBlock’s “Large Holder Netflow” indicator, a notable trend has emerged among accounts holding at least 0.1% of the overall DOGE supply. This netflow calculates the difference between the tokens coming into and going out of whale wallets. A positive netflow suggests these investors are accumulating, while a negative one indicates significant withdrawals from their assets.
Recent data shows that large holder netflow has decreased by 57.29% within the last week. Additionally, in the wider context of 30-day and 90-day periods, the netflow has decreased by 169.46% and 166.98%, respectively, suggesting that many major investors are scaling back their Dogecoin investments due to its lackluster performance over the past few months.
This observation is further validated by the “crypto exchange netflow” analysis, which monitors the transfer of DOGE tokens between exchanges and private wallets. Typically, a negative netflow suggests accumulation, as more tokens exit exchanges, whereas a positive netflow indicates increased selling pressure as tokens are deposited into exchanges.
Considering this, the current DOGE sentiment becomes clearer. In just the past 24 hours, the total DOGE balance on cryptocurrency exchanges has risen by 86.33 million tokens. Over the past month, exchange balances have moved up by 93.2 million DOGE, and within the last three months, the increase has reached 96.9 million DOGE.
Should Investors Be Concerned?
Before making any rash decisions, it’s crucial to understand that whale activities, while significant, may not always indicate long-term market movements. Dogecoin continues to hold its position as the leading meme coin by market capitalization, and its fundamentals suggest a positive outlook in the long run. Despite experiencing a general downward trend like many cryptocurrencies, DOGE has fared better than several others with larger market caps.
Currently, DOGE remains above the $0.1 mark, which is now seen as a significant support level. At the time of this report, DOGE is trading at $0.1037, reflecting a 6.55% gain in the past 24 hours.
