On-chain data shows Dogecoin whales have expanded their holdings recently, a sign that big-money investors are buying the dip.
Addresses or investors are divided into these cohorts based on the number of tokens that they are carrying in their balance. The 1 to 10 coins group, for example, includes all holders owning between 1 and 10 DOGE.
Given the massive size of holdings involved, whales can carry some degree of influence in the market. This can make their on-chain behavior worth keeping an eye on.
Now, here is the chart shared by the analyst that shows the trend in the Supply Distribution of Dogecoin whales over the past couple of months:
As displayed in the above graph, Dogecoin investors carrying more than 1 billion DOGE saw their Supply Distribution plunge near the end of July, indicating that big-money entities exited from the market. What followed the selling was an extension of bearish price action for the asset.
The mood among the whales appears to have turned around in the past day, however, as the indicator’s value has seen a sharp surge instead. “Whales bought over one billion Dogecoin $DOGE in the last 24 hours!” notes Martinez. Given the timing of the buys, it’s possible that these humongous investors believe the current lows to be offering a profitable entry point into the memecoin. It only remains to be seen, though, whether this bet would pay off for the whales.
Following a drop of almost 8% over the past week, Dogecoin has seen its price withdraw under the $0.20 mark.
