Dogecoin, the widely-known meme-inspired cryptocurrency, has once again drawn public curiosity in recent days, even in light of the bearish sentiment affecting the larger crypto landscape. DOGE saw a brief uptick after an enigmatic post on the social media site X (formerly Twitter) by billionaire entrepreneur Elon Musk last week, which seemed to reference the token in a subtle manner.
However, despite this short-lived increase, the prevailing market perception of Dogecoin remains largely static. The response to Musk’s post has not generated enough sustained positivity, especially among significant investors. In fact, major holders have been reducing their positions noticeably, along with an uptick in DOGE inflows to cryptocurrency exchanges.
Dogecoin Whale Holdings
IntoTheBlock’s “Large Holder Netflow” metric reveals an intriguing trend among wallets holding at least 0.1% of the total circulating DOGE supply. The netflow represents the difference between the influx of tokens into whale wallets and the outflow from them. A positive netflow suggests accumulation by whales, while a negative netflow indicates substantial outflows.
Per this metric, the total large holder netflow has decreased by 57.29% over the past week. Additionally, this metric indicates reductions of 169.46% and 166.98% in the larger 30-day and 90-day time frames. These sharp drops imply that numerous significant holders have considerably diminished their DOGE holdings, likely as a response to the cryptocurrency’s disappointing price performance in the last three months.
Further supporting this trend is the “crypto exchange netflow” metric that monitors the movement of DOGE tokens in and out of exchange wallets. Typically, accumulation phases are represented by a negative exchange netflow, as more tokens leave exchanges in favor of private wallets. Conversely, a positive exchange netflow usually indicates rising sell pressure as more tokens enter exchanges for possible liquidation.
Following this logic, we can gain a clearer picture of the current sentiment surrounding Dogecoin. In just the last 24 hours, the total amount of DOGE held on various cryptocurrency exchanges rose by 86.33 million DOGE tokens. Similarly, exchange balances have grown by 93.2 million DOGE tokens over the past 30 days and 96.9 million DOGE over the last 90 days.
Is It Time To Panic?
Before jumping to conclusions, it’s crucial to understand that while whale activity is significant, it doesn’t always predict long-term movements. DOGE remains the largest meme coin by market capitalization, and its fundamentals suggest a positive outlook in the long run. In terms of price action, DOGE has primarily trended downward, consistent with the broader cryptocurrency market.
Nevertheless, it has been able to maintain a stronger position than many other significant market-cap cryptocurrencies. DOGE continues to trade above $0.1, solidifying this level as a strong price support.
As of the time of writing, DOGE is trading at $0.1037, reflecting a 6.55% increase in the past 24 hours.
Featured image created with Dall.E, chart from Tradingview.com
