- This rise indicates growing demand, suggesting that DOGE may begin to rise again.
- The 90-day MCA and distribution volumes reveal that selling pressure has decreased.
Dogecoin [DOGE] Whales, especially those with holdings between 100 million and 1 billion coins, have been buying up coins since May 28, according to data from AMBCrypto. Obtained The total acquisition price from Santiment exceeded $100 million.
As a result, the supply held by this cohort has increased from 20.69% to 21.40%, which is reflected in the balance of addresses. The surge in buying activity could be good for DOGE price.
DOGE is ready: what for?
This indicates that demand for the coin is growing, and a price increase may follow. At the time of writing, the price of Dogecoin is at $0.15, indicating that the price has remained flat over the past seven days.
However, whale buying could change that for DOGE. If sustained, the cryptocurrency could surge and a rally above $0.20 like in March could be the next big thing.
Source: Santiment
However, Dogecoin needs other indicators to validate this bullish prediction, and if they align, the price could move in the aforementioned direction.
However, if they fail to do so, DOGE could plummet to $0.12.AMBCrypto analyzed the coin’s price potential by looking at its average coin age (MCA).
When the average coin age increases, it means that older coins are moving through wallets, which in most cases indicates circulation and leads to a drop in price.
Old coins return to base
From the chart below, the 90-day MCA has been rising since the first week of April to May 29. Therefore, we can conclude that these sales by long-term holders have caused DOGE to stagnate between $0.13 and $0.16 over the last month.
However, over the past three days, the indicator has been falling. At the time of writing, it was at 49.08, indicating that more holders are Store your coins It is stored under self-management rather than at an exchange.
If this continues for the next few weeks, DOGE could see a parabolic move in favor of the bulls. Additionally, on-chain data shows that the number of Dogecoins circulating in the market is declining.
Source: Santiment
At the time of writing, the daily circulation is 357.04 million, indicating that fewer coins are involved in trading. Price-wise, this decrease can be seen as a positive development, as lower circulation may suggest less selling pressure.
While low selling pressure does not necessarily lead to a breakout, other indicators are signaling that an uptrend is near.
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Moreover, at the time of writing, Dogecoin holders had made 83% profits. Into the Block.
However, this percentage could increase if DOGE slowly starts to climb the charts. If this happens, the percentage of holders with money could reach 90%.
