Dogecoin Whales Invest $100M in DOGE: Is a Bull Market on the Horizon?

$DOGE - Dogecoin whales, particularly those holding 100 million to 1 billion coins, have been accumulating since May 28, purchasing over $100 million worth of DOGE, as per data from Santiment. This has increased their share of the supply from 20.69% to 21.40%.

1. Rising Demand and Potential Price Increase

The growing demand for DOGE signals a potential price increase. Currently priced at $0.15, Dogecoin's price has been stable over the past week. However, the surge in whale activity might propel DOGE above $0.20, reminiscent of its performance in March.

2. Key Metrics and Mean Coin Age

The Mean Coin Age (MCA), which indicates the average age of coins in wallets, has been rising since early April, suggesting old coins are being distributed, leading to lower prices. Recently, however, MCA has been declining, indicating more holders are keeping their coins in self-custody rather than on exchanges. This trend, if continued, could lead to a parabolic move favoring bulls.

3. Circulation and Selling Pressure

On-chain data shows a drop in the number of Dogecoins circulating, with one-day circulation at 357.04 million. This decrease suggests low selling pressure, which could support a price increase. While low circulation doesn't guarantee a breakout, it is a positive sign.

4. Holder Profitability

At present, 83% of Dogecoin holders are in profit, according to IntoTheBlock. If DOGE's price rises, this percentage could increase to 90%, further encouraging a bullish trend.

The accumulation by DOGE whales and the declining MCA indicate a potential bullish move. While low circulation suggests reduced selling pressure, the alignment of these metrics could lead to a significant price rally for Dogecoin.

The accumulation by DOGE whales and the declining MCA indicate a potential bullish move. While low circulation suggests reduced selling pressure, the alignment of these metrics could lead to a significant price rally for Dogecoin.