On-chain data shows the Dogecoin whales have participated in a significant amount of selling recently, a potential reason behind the memecoin’s decline.
Such investors can carry some degree of influence in the market, so movements related to them can be worth watching. Their behavior doesn’t always impact the memecoin’s price, but it can still be revealing about the sentiment among this key cohort.
Now, here is the chart shared by Martinez that shows the trend in the Dogecoin Supply Distribution of the whales over the last few months:
As displayed in the above graph, the Dogecoin whales have seen a sharp decline in their supply recently, indicating that these humongous holders have been distributing. In total, the group has shed 440 million DOGE (worth $81.4 million) from its collective holdings during the last 72 hours. Alongside this trend, the DOGE price has slid down, implying that the whale selloff may have had a role to play.
The Supply Distribution of this cohort could now be monitored, as where it goes next could potentially contain hints about what’s coming for the cryptocurrency’s price.
Earlier in the week, Martinez shared another chart related to Dogecoin, this one showing a technical analysis (TA) pattern that DOGE has been trading inside on the 12-hour timeframe.
The support line of the channel is located at $0.18. In the post, the analyst noted that holding this level could be key for DOGE. Following the whale selling, the coin is now retesting the level, with a brief fall below it even happening on Thursday, before the memecoin recovered back above it on Friday.
“If bulls defend it, next targets: $0.25 and $0.33,” said Martinez.
At the time of writing, Dogecoin is floating around $0.185, down almost 6% in the last seven days.
