Bitrabo Editorial
Dogecoin investors are actively seeking to shift the currency’s trend following a period of lackluster price activity. Current on-chain metrics indicate that substantial DOGE holders aim to build on last week’s positive price movements. Insights from IntoTheBlock (ITB) show marked increases in both large holder and exchange netflows, signaling heightened accumulation among DOGE whales.
Activity Among Dogecoin Whales Rises
The “Large Holder Netflow” metric from IntoTheBlock, which tracks DOGE tokens moving into and out of wallets held by significant investors, has shifted from negative to positive. This measure focuses on addresses holding a minimum of 0.1% of the total DOGE supply. A greater inflow compared to outflow signifies a positive netflow.
Such a trend is generally seen as a bullish signal, suggesting whales are adopting accumulation strategies. Conversely, when outflows exceed inflows, it raises concerns about the currency’s price stability.
Recent ITB findings reveal a notable rise in netflow, escalating from a negative -2.23 million DOGE to a significant 20.66 million DOGE in a 24-hour period—representing a staggering increase of 1000%. While this flow might seem minimal compared to previous DOGE trading volumes during market uptrends, it marks a critical development after a prolonged stagnation for this popular cryptocurrency.
Interestingly, this rise in DOGE whale transactions aligns with a significant drop in exchange balances. During the same 24-hour timeframe, the overall exchange netflow plummeted from 28.25 million DOGE to a negative -43 million DOGE.
Evaluating DOGE’s Price Performance
This simultaneous rise in whale accumulation alongside falling exchange balances suggests that major holders may be relocating their assets off exchanges, potentially in preparation for an impending bullish phase.
As of this writing, DOGE is priced at $0.1086, with a 24-hour increase of 1.96% and a 7-day rise of 7.78%. Despite the recent price gain, DOGE has yet to surpass the crucial $0.11 mark, a resistance level that has been challenging to breach since early September.
Technical analysis reveals $0.11 as a significant threshold for a bullish trend. Breaking above this point could encourage further accumulation from major holders and favorably impact DOGE’s price trajectory for the remainder of the year.