On-chain data shows that Dogecoin whales have recently seen a strong wave of accumulation, which could be favorable for Dogecoin's price.
The holdings of Dogecoin whales have just increased by approximately $1.08 billion.
As analyst Ali Martinez noted in a new post on X, Dogecoin whales have recently been participating in buying activity. The relevant on-chain metric here is the 'Supply Distribution' from analytics company Santiment, which tells us the total supply of Dogecoin currently held by specific wallet groups.
They are categorized into these groups based on the number of tokens held in their addresses or investor balances. In the context of the current topic, the whale group is worth noting, consisting of holders with 10 million to 1 billion DOGE.
At the current exchange rate of memecoins, the upper limit of this range is $3.5 million, and the lower limit is $350 million. Therefore, the only investors eligible to be considered whales would be among the largest entities on the network.
Holding a large amount inherently means having more power in the market, so whales can occupy a key position in asset price trends. This makes the supply of these holders worth monitoring, as any changes in it could ultimately reflect in the cryptocurrency.
Now, here is the chart shared by analysts showing the trend of Dogecoin whale supply distribution over the past month or so:
As shown in the above chart, the supply of Dogecoin whales peaked in early December but then reversed trend and gradually sold off.
The slow distribution suddenly turned into a sharp decline in the indicators in the second half of the month, while at the same time, the price of the memecoin also suffered a significant drop. Considering the timing, the former is likely at least partially responsible for the latter.
After the last sell-off around Christmas, the whales finally stopped selling, but since their supply has shown a sideways trajectory, they also haven't started accumulating.
This situation has changed in recent days as the holdings of these giants have significantly increased. More specifically, during this surge in indicators, whales collectively purchased tokens worth $1.08 billion.
Again, the trend of whale supply distribution seems to be translating into the value of Dogecoin, which is showing signs of a recovery rebound. It remains to be seen whether the whales will continue to support this trend or if they will quickly take profits, potentially stifling this momentum.
DOGE Price
Earlier in the day, Dogecoin briefly broke above the $0.350 level but then retraced slightly to $0.349.
