Dogecoin owners are working hard to change the trajectory of crypto after the last weeks of shape and uninteresting value action. Notably, on-chain data suggests that major Dogecoin holders are working to extend last week’s promising price rally. Data insights from IntoTheBlock (ITB) reveal that both the netflow of major holders and exchange netflow show a significant increase, suggesting an increasing level of activity and accumulation among DOGE whales.
Dogecoin Whales Expand Activity
One of IntoTheBlock’s leading indicators of whale activity, “Large Holder Netflow,” recently saw an uptick from negative to positive. The netflow of the main holder tracks the difference between the number of incoming DOGE tokens and those that leave which addresses at least 0.1% of the circulating supply. The higher the inflow is compared to the outflow, the greater the net flow.
This trend is often interpreted as bullish for the cryptocurrency in question, as it means whales are using hoarding strategies. However, periods of negative readings indicate that asset outflows are outpacing inflows to whale addresses, which may be related to price action.
The latest data from ITB reveals that net flows have seen a dramatic increase, skyrocketing from a negative -2.23 million DOGE to 20.66 million DOGE within the last 24 hours. This 1000% increase suggests that the whales increased their activity significantly during this period. While this level of net flow may seem modest compared to the large DOGE trading volume seen during previous market booms, it represents an important first step following an extended quiescence period for the popular meme coin.
Interestingly, this increase in DOGE whale activity coincides with significant declining balances across various crypto exchanges. In particular, the combined exchange netflow decreased from 28.25 million DOGE to 43 million DOGE in the same 24-hour period.
DoGE Price Outlook
This dual trend of increasing whale accumulation accompanied by decreasing exchange rates indicates that large holders are removing their assets from the exchange, perhaps in anticipation of a bullish rally.
At the time of writing, DOGE is trading at $0.1086 and is up 1.96% in the last 24 hours and 7.78% in the last seven days. Despite the price rally, DOGE is yet to break above $0.11, a price point that has proved difficult to break since early September.
Technical analysis of DOGE price reveals $0.11 being an important price point in the view of a bullish rally. The only thing left now is for DOGE to break out above $0.11. If it manages to surpass the $0.11 mark, it could trigger further accumulation from major holders and could significantly change its price movement for the rest of the year.
The featured image was created with Dall.E, a chart from Tradingview.com