Dogecoin Witnesses Surge in Transactions as Whales Invest $129 Million
Dogecoin is currently facing a crucial turning point that could determine its short-term price trajectory. Despite a significant drop in price over the past week, recent activity from large holders of DOGE indicates that the tide may soon change. According to on-chain data from Santiment, addresses holding between 10 million and 100 million Dogecoins have collectively accumulated over $129 million worth of DOGE in the past seven days.
Whales Accumulate DOGE
Whale activity in the past week has shown an increase in accumulation, despite the decline in price for the meme coin. These whale addresses have purchased over 900 million tokens in seven days, demonstrating their confidence in DOGE despite its recent downturn. As a result, the number of coins owned by this group of traders has grown by approximately 5% to a total of 18 billion tokens.
A closer look at the chart reveals a consistent upward trend in the collective holdings of these whale wallets since the end of March. While previous periods of price increases led to accumulation, the recent accumulation is unique because it coincides with a corresponding price decrease, indicating a different strategy from the whale wallets.
Increased Whale Activity and DOGE Price Impact
Additional data from IntoTheBlock also suggests a surge in activity for DOGE, alongside the whale accumulation. Over 9.29 billion DOGE tokens were traded in the past 24 hours, with 1,500 transactions completed, indicating active trading of DOGE.
Given its status as a meme coin, Dogecoin is highly influenced by sentiment among traders and large investors. These significant investors, known as “whales,” can have a substantial impact on DOGE’s price when they move their funds. Their buying activity can create bullish momentum, driving up demand and subsequently pushing the price higher as other traders follow suit.
Interestingly, the recent whale accumulation serves as a much-needed catalyst for bullish momentum. At the time of writing, DOGE is trading at $0.1428, experiencing an 11.29% drop in the past seven days. However, the rate of decline seems to be slowing down, with DOGE only registering a 0.6% loss in the past 24 hours. According to a crypto analyst, the current spiral towards $0.14 is forming an important generational bottom for DOGE.