A whopping 5.8 billion Dogecoin tokens have been moved in the past 24 hours, signaling potential profit-taking by whales.
On-chain data shared by technical analyst Ali Martinez shows that dormant Dogecoin (DOGE) tokens have suddenly become active again, with 5.8 billion tokens transferred over the past 24 hours.
This notable reactivation coincides with a sharp increase in the Age Consumed metric, a metric that tracks the movement of coins that have been dormant for a long time.
Specifically, Martinez’s chart shows two important signals: a spike in Age Consumed, which shows that old DOGE holdings have been transferred, and a significant increase in daily circulating volume, which reflects strong token movement. Previously, DOGE’s daily circulating volume was hovering around 1.67 billion tokens, but suddenly spiked to 5.8 billion tokens.
The sudden movement of billions of DOGE could indicate that large investors (whales) are taking profits, restructuring their portfolios, or preparing for upcoming market developments.
Dogecoin Price Action in Previous Instances
Historically, spikes in activity from dormant tokens often signal significant price movements. For example, in the first week of November, the Age Consumed index was low and the daily DOGE circulation was under 1 billion tokens.
However, as DOGE prices began their strong growth in the second week of November, the Age Consumed index spiked, coinciding with over 5 billion DOGE entering circulation.
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However, as Dogecoin prices began to consolidate, these indexes dropped to lower levels until yesterday’s sharp spike. This suggests that Dogecoin could be poised for another major breakout in the coming days, especially as Bitcoin continues to set new highs. Bitcoin hit around $107,800 on Monday evening before stabilizing around $106,000 at press time.
Typically, altcoins and meme coins see the biggest price moves when Bitcoin stabilizes after several consecutive days of gains.
Dogecoin is trading at $0.3991, down 2% over the past 24 hours. Essentially, recent data suggests that investors may still have an opportunity to accumulate Dogecoin at low prices before the next bull run begins. For comparison, Dogecoin surged 234% in just three weeks in November.