On-chain data shows that Dogecoin investors have recently been accumulating heavily, a sign that could drive DOGE prices up.
Dogecoin whales have just increased their holdings to about $1.08 billion.
As analyst Ali Martinez pointed out in a recent post on X, DOGE whales have been involved in recent buying activities. The relevant on-chain indicator here is the 'Supply Distribution' from the analytics company Santiment, which tells us about the total amount of Dogecoin supply that a certain wallet group is currently holding.
Addresses or investors are placed in these groups based on the amount of coin they hold in their balance. In the context of the current topic, the whale group is of interest, including those holding from 10 million to 1 billion DOGE.
According to the current exchange rate of the memecoin, the upper limit of the conversion range is $3.5 million and the lower limit is $350 million. Therefore, the only investors eligible to become whales will be among the largest entities on the network.
Holding a large amount naturally means having more power in the market, thus, these whales can play a crucial role in the asset's price action. This makes the supply of these holders worth monitoring, as any changes in it could reflect on the cryptocurrency.
Below is a chart shared by the analyst, showing the Supply Distribution trend for Dogecoin speculators over the past month:
As shown in the chart above, Dogecoin whales pushed the supply to a peak in early December, but then reversed direction and gradually sold off.
The slow distribution suddenly turned into a sharp decline in the indicator in the second half of the month, along with a significant drop in the price of the memecoin. In terms of timing, it is likely that the former bears at least some responsibility for the latter.
After the final sell-off during Christmas, the whales finally stopped selling, but they also did not start accumulating as their supply tends to move sideways.
This has changed in recent days, as these giant entities have added a significant amount to their holdings. Specifically, the whales have purchased a total of $1.08 billion in coins during this spike in the index.
Once again, the trend in Whale Supply Distribution seems to be translating into the value of Dogecoin, showing signs of a recovery. It is still unknown whether these whales will continue to support this bullish trend or whether they will quickly take profits, potentially killing the momentum.