Dogecoin enthusiasts are relentlessly striving to reshape the crypto’s future following recent weeks of lackluster and mundane price movements. Significantly, on-chain analytics indicate that prominent Dogecoin holders are attempting to extend a favorable price rally from last week. Insights from IntoTheBlock (ITB) show that both large holder netflow and exchange netflow have experienced marked increases, indicating heightened activity and accumulation among DOGE whales.
Dogecoin Whales Boost Activity
One of the primary indicators of whale behavior from IntoTheBlock, the “Large Holder Netflow,” has recently shifted from negative to positive values. This metric tracks the balance between the quantity of DOGE tokens coming into and leaving wallets that hold at least 0.1% of the total supply. A rise in inflow compared to outflow results in an increased netflow.
Such trends are generally viewed as optimistic for the cryptocurrency involved, as they suggest that whales are executing accumulation strategies. Conversely, negative readings indicate that outflows are outpacing inflows to whale wallets, which may raise concerns about future price movements.
Recent findings from ITB indicate that the netflow surged dramatically, jumping from a negative -2.23 million DOGE to an impressive 20.66 million DOGE within just the past day. This 1000% boost implies that whales have significantly ramped up their activities during this brief timeframe. While this level of netflow might seem minor compared to the massive DOGE trading volumes during past market rallies, it signifies a critical first step after a prolonged period of dormancy for the famous meme coin.
Interestingly, this increase in DOGE whale activity coincides with a significant drop in balances across multiple cryptocurrency exchanges. Notably, the overall exchange netflow plummeted from 28.25 million DOGE to a negative -43 million DOGE during the same 24-hour timeframe.
DOGE Price Expectations
This combination of rising whale accumulation and declining exchange balances suggests that large holders are withdrawing their assets from exchanges, perhaps in preparation for a bullish surge.
As of now, DOGE is trading at $0.1086, reflecting a 1.96% increase over the past 24 hours and a 7.78% rise over the last week. Despite this price climb, DOGE has yet to surpass $0.11, a level that has proven challenging to breach since early September.
Technical assessments reveal that $0.11 remains a pivotal resistance level for a bullish move. The next crucial task for DOGE is to climb above $0.11. If it achieves this, it could spur further accumulation from large holders and significantly influence its price trajectory for the remainder of the year.
Featured image created with Dall.E, chart from Tradingview.com
