Dogecoin holders are working tirelessly to change the price of crypto after the previous weeks of stagnation and uninteresting price action. Notably, on-chain data suggests that large Dogecoin holders are working to extend a promising price rally from last week. Data insights from IntoTheBlock (ITB) reveal that both net flows from large holders and net flows from exchanges are showing significant increases, indicating increased activity levels and accumulation among DOGE whales.
Dogecoin Whales Increase Activity
One of IntoTheBlock’s best indicators of whale activity, the “Large Holder Netflow,” recently saw a surge from negative to positive values. The large holder netflow tracks the difference between the amount of DOGE tokens entering and leaving addresses that represent at least 0.1% of the circulating supply. The higher the inflow compared to the outflow, the higher the netflow.
This trend is usually interpreted as bullish for the cryptocurrency in question, as it implies that whales are using accumulation strategies. However, periods of negative values indicate that outflows are exceeding inflows into whale addresses, which could be worrisome for the price outlook.
Recent data from ITB reveals that net flows have seen a dramatic increase, from a negative zone of -2.23 million DOGE to an impressive 20.66 million DOGE in just the last 24 hours. This 1000% increase suggests that whales have been massively increasing their activity within this time frame. While this level of net flow may seem modest compared to the massive DOGE trading volumes seen during previous market surges, it represents an important first step after a prolonged period of quiet for the popular meme coin.
Interestingly, this increase in DOGE whale activity coincides with a notable decrease in balances across various crypto exchanges. In particular, aggregated exchange net flow dropped from 28.25 million DOGE to a negative -43 million DOGE in the same 24-hour period.
DOGE Price Forecast
This dual trend of increasing whale accumulation coupled with decreasing stock market balances indicates that large holders are moving their assets off the exchange, possibly in anticipation of a bullish rally.
At the time of writing, DOGE is trading at $0.1086 and is up 1.96% in the past 24 hours and 7.78% in the past seven days. Despite the price increase, DOGE has yet to break above $0.11, a price level that has proven difficult to overcome since early September.
DOGE Price Technical Analysis Reveals $0.11 be a crucial price point in the outlook for a bullish rally. All that remains now is for DOGE to break above $0.11. If it manages to break above the $0.11 level, it could trigger more accumulation from large holders and significantly change the price action for the rest of the year.
Main image created with Dall.E, chart from Tradingview.com