On-chain data shows that Dogecoin whales have been accumulating furiously recently, which could be a bullish sign for Dogecoin price.
Dogecoin whale holdings increase by approximately $1.08 billion
As analyst Ali Martinez points out in a new post on X, the DOGE whale has been on a buying spree lately. An on-chain indicator of relevance here is the “supply distribution” from analytics firm Santiment. This shows the total supply of Dogecoin currently held by a particular group of wallets.
Addresses or investors are placed into these cohorts based on the number of coins they have in their balance. In the context of the current topic, the whale group consisting of holders owning between 10 million and 1 billion DOGE is interesting.
At Memecoin's current exchange rate, the upper end of the range translates to $3.5 million and the lower end to $350 million. Therefore, the only investors that qualify as whales will be one of the largest companies on the network.
Large holdings naturally mean greater influence in the market, so whales can play an important role in asset price movements. Therefore, the supply of these holders is worth keeping an eye on, and any changes in it could ultimately be reflected in the cryptocurrency.
Here is a graph shared by an analyst that shows the trend in Dogecoin whale supply distribution over the past month or so.
As shown in the chart above, the Dogecoin whale reached a supply peak in early December, but has since reversed into a gradual decline.
The slow distribution suddenly turned into a sharp decline in the index in the second half of the month, and the meme coin price also suffered a corresponding drop. Given the timing, the former may have been at least partly responsible for the latter.
After the last surge of selling around Christmas, the whales finally stopped selling, but they also didn't start accumulating as supply showed a flattening trajectory.
This situation has changed in recent days as these giants have added notable amounts to their holdings. More specifically, whales purchased a total of $1.08 billion worth of coins during the spike in this indicator.
Once again, the trend in whale supply distribution appears to be reflected in Dogecoin's value, indicating a recovery trend. It remains to be seen whether the whales will continue to support this momentum or if they could take a quick profit and kill the momentum.
doge price
Dogecoin briefly exceeded the $0.350 level earlier in the day, but has since rebounded slightly to $0.349.
