Despite the upheaval that has been occurring in the cryptocurrency market, there is one group of investors that have not given up their trust, and that group is the Dogecoin investors. To be more specific, the larger holders of Dogecoin have been making their presence known as of late, opting to go in the opposite direction of the broader market. They have purchased a significant quantity of the meme currency since the market is currently experiencing anxiety and panic, which creates a situation that is ideal for purchasing inexpensive coins.
Big Dogecoin Holds Up the Ante in the Competition
A pretty intriguing development is that major holders of Dogecoin have begun purchasing coins rather than selling them. This is a rather fascinating turn of events. However, this occurs in spite of the fact that these huge investors are making a profit on their holdings, which indicates that they anticipate the price to continue to rise.
The information provided by IntoTheBlock indicates that these huge investors acquired more than 1.32 billion DOGE in a span of twenty-four hours on Tuesday. At the time, the estimated worth of this purchase in terms of dollars was around 127 million dollars. In addition, there was a striking contrast to the subdued purchasing patterns of these whales in the days previous, which totaled around 500 million DOGE.
It is only natural that the outflow will, to some extent, cancel out the effect of the big holding influx. On the other hand, considering that the volume of outflows was far smaller than the level of inflows, the net flows for these whales came out to 967 million DOGE, which is still a significant amount relative to the meme currency.
On December 12, as the market started to shift, there was a decrease in the number of large transactions. By the 12th of December, the statistics for major holdings had dropped by 22% in just one day, from $1.62 billion on the 11th of December. On the other hand, this is not one of the worst things that may happen because it may indicate that these huge holders are hesitant to shift coins that are available for sale.
It is possible that the reduction in price may be explained by the fact that the open interest in Dogecoin has been decreasing concurrently with the price. In most cases, an increase in open interest will result in an increase in the price of the digital asset; nonetheless, this fall may be a reason for concern for investors.
After reaching a one-year high of $603 million on December 10, the open interest in DOGE had reached its highest point. On the other hand, on the 12th of December, this sum had dropped by 21.7%, reaching $472 million. Given that the open interest is a measurement of the number of open Dogecoin futures or options contracts, this indicates that a smaller number of traders are establishing positions in the meme currency at the present time. Additionally, over the course of the past several days, there has been a significant exodus of long traders, which has been a contributing factor to the decrease in open interest.