Dogecoin recently saw a near 10% rally after on-chain data showed the exit of a large number of owners of the DOGE network.
Dogecoin Has Seen A Jump Of Almost 12% In The Last Day
This week has brought bullish winds to the cryptocurrency sector as a whole, but among the top coins, one asset in particular stands out: Dogecoin. The meme-based token managed to surpass the $0.127 level after registering a rise of almost 12% during the last 24 hours.
The price of the coin appears to have seen a sharp surge over the past day | Source: DOGEUSDT on TradingView
As you can see, Bitcoin (BTC) is up about 4% in the same window, while Shiba Inu (SHIB), DOGE’s competitor, is up about 5%. Assets also performed well in terms of weekly returns, with only Bitcoin Cash (BCH) with a 12% return approaching DOGE’s 14% gain.
DOGE’s market cap has now grown to $18.5 billion, as shown in the table below.
The current standing of DOGE in the wider cryptocurrency sector | Source: CoinMarketCap
DOGE in 8th place in the top cryptocurrency list now has a comfortable gap over Tron (TRX) in 9th place, but the coin is still not close to XRP (XRP) at 7, so its place in the field is unlikely changed in the near future. Dogecoin’s recent rally has been under interesting circumstances, as on-chain data shows that a large number of owners have recently decided to abandon memecoin.
DOGE Total Ownership Value Has Decreased Recently
According to data from on-chain analytics company Santiment, the Total Number of Managers has registered a significant decline in Dogecoin recently. “Total Number of Holders” here refers to the index which, as its name suggests, tracks the total number of DOGE addresses currently holding a balance.
Below is a chart shared by the analytics company that shows the trend in this DOGE metric over the past few months:
The value of the metric appears to have seen a plummet recently | Source: Santiment on X
From the graph, it is clear that the Total Number of Dogecoin Holders has seen a significant drop recently, which means that a large number of users have decided to delete their holdings from the network.
In particular, about 106,600 addresses emptied themselves during the last week, which brought the index down to 6.62 million, the lowest number since April. It’s possible that these were investors who got fed up with memecoin’s bearish price action, so they decided to leave for greener pastures. In an ironic twist of fate, however, Dogecoin has shown better upside than any other top currency since these traders left.
The capitulation from weak hands also means that the current rally can have a high probability of success, since the coins issued by these investors are likely to be taken by traders with strong conviction, who may be willing to stay in their profits for a while. long.
Featured image from Dall-E, Santiment.net, chart from TradingView.com
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