The recent recovery in Dogecoin’s price has brought a sigh of relief to investors, especially after the meme coin languished around the $0.09 mark for an extended period. As prices rebound, whale activity has surged, with large investors moving substantial amounts of DOGE to and from their wallets. However, the net flow data suggests a potentially bearish outlook for Dogecoin’s future price movements.
According to data from the IntoTheBlock platform, large whale transactions—defined as those involving $100,000 or more—remain significant, despite a slight decrease in transaction volume. Over the past two days, the average number of whale transactions has averaged around 800, indicating sustained interest among these major holders.
While whale transactions dipped from 899 on Sunday to 818 on Monday, the amount of DOGE being moved paints a more complex picture. On Monday alone, a staggering 5.19 billion DOGE were transferred, valued at approximately $522.89 million, compared to 4.59 billion DOGE ($499.99 million) on Sunday. This daily average of $500 million being moved suggests that while transaction counts are down, the scale of movement remains robust.
To better understand the implications of this whale activity, we can look at net flow data, which tracks the inflows and outflows from large whale wallets. Recent data indicates a troubling trend: inflows have dropped significantly while outflows have increased. Specifically, inflows fell from 37.4 million DOGE on Sunday to just 115.11 million DOGE on Monday. This drop highlights that whales are not actively buying into Dogecoin at the moment.
Conversely, outflows surged from 18.37 million DOGE to 107.71 million DOGE in the same timeframe. This increase in selling activity suggests that many whales are opting to sell rather than accumulate, contributing to the selling pressure that has made it challenging for Dogecoin to reclaim the $0.10 threshold.
Despite the bearish signals from whale activity, a significant portion of Dogecoin holders appears to be committed for the long haul. Data reveals that approximately 3.93 million addresses have held their DOGE coins for over a year, while 2.2 million addresses have been holding for between one and twelve months. In contrast, only 113,660 addresses have held their DOGE for less than a month.
This long-term holding behavior suggests that many investors believe in the future potential of Dogecoin, even amidst short-term volatility and whale selling pressure.
While the recovery in Dogecoin’s price is a positive development, the heightened activity among whales paints a cautionary picture. The decline in inflows combined with rising outflows indicates that selling pressure could continue to challenge the coin’s ability to regain significant price levels. Investors should stay alert to these trends, particularly as they navigate the volatile landscape of cryptocurrency investments. Monitoring whale movements and market sentiment will be crucial for understanding the future trajectory of Dogecoin.
September 2024, Cryptoniteuae