Dogecoin holders up their stake by 1%: 265.86M reasons to buy DOGE?
Dogecoin saw a price increase recently. Could the recent accumulation from large holders have impacted it?
- Large holders have accumulated millions of DOGE.
- DOGE saw an over 1% price increase.
Despite Dogecoin’s [DOGE] recent negative price trend, large holders have continued to accumulate more of the memecoin.
This accumulation trend by significant holders could have influenced the price movement of Dogecoin.
Large Dogecoin addresses accumulate tokens
AMBCrypto’s analysis of large Dogecoin addresses revealed a recent uptick in accumulation.
Addresses holding between 100 million to 1 billion DOGE have seen a slight increase, reaching over 21% and maintaining that level.
Comparatively, as of the 6th of May, this percentage was around 20%, indicating an additional 1% accumulation at the time of this writing.
This uptrend in accumulation suggests that a growing number of addresses are acquiring significant amounts of DOGE, despite the cryptocurrency’s recent lackluster price performance.
This bullish signal implies that these addresses anticipate a potential price increase in the future.
Netflow shows high large holders’ activities
As of the 7th of May, the Large Holders Netflow for Dogecoin stood at approximately 265.86 million DOGE, equivalent to roughly $41.2 million.
This figure marked a notable spike following a previous Netflow drop to -342 million DOGE. However, at the time of this writing, the DOGE Netflow had decreased to around 49.3 million DOGE, signaling a decline.
The Large Holders Netflow metric serves as a valuable tool for monitoring the movements of whales and investors holding over 0.1% of the circulating supply.
Increases in Netflow typically indicate accumulation by significant market players, suggesting a bullish sentiment, whereas decreases may indicate reduced positions or selling activities.
Total number of holders remains steady
Analysis of the total number of Dogecoin holders indicated a stable trend over the past few months.
Examination of the chart on Santiment revealed that the number has consistently hovered between 6.64 million and 6.63 million.
At press time, the count stood at 6.63 million, with the chart displaying a flat trajectory.
This stability suggests that while there may be movements among large holders, the overall number of holders remains unchanged.
This could signal that the price is unlikely to experience a significant downtrend soon.
DOGE remains bearish
The recent movement of whales could have influenced the price trend of Dogecoin. As of press time, Dogecoin was trading at around $0.144, reflecting an increase of over 1% in price.
Before this uptick, DOGE experienced three consecutive days of downtrends, leading to a decline from $0.15 to $0.14.
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However, to shift from its current bearish trend, DOGE would require sustained upward movements.
As of this writing, its Relative Strength Index (RSI) was above 45 but still below the neutral line, indicating potential for further price fluctuations.
