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On-chain data shows Dogecoin whales have expanded their holdings recently, a sign that big-money investors are buying the dip.
Dogecoin Whales Have Increased Holdings By 1 Billion DOGE
In a new post on X, analyst Ali Martinez has talked about the latest trend in the Supply Distribution of the Dogecoin whales. The “Supply Distribution” here refers to an indicator from on-chain analytics firm Santiment that tells us about the total amount of the asset that a given wallet group is holding right now.
Addresses or investors are divided into these cohorts based on the number of tokens that they are carrying in their balance. The 1 to 10 coins group, for example, includes all holders owning between 1 and 10 DOGE.
In the context of the current topic, the whales are the cohort of interest. These investors are typically defined as holding more than 1 billion DOGE, with there being no upper end to the range. At the current exchange rate, the cutoff for the group converts to almost $200 million.
Given the massive size of holdings involved, whales can carry some degree of influence in the market. This can make their on-chain behavior worth keeping an eye on.
Now, here is the chart shared by the analyst that shows the trend in the Supply Distribution of Dogecoin whales over the past couple of months:
As displayed in the above graph, Dogecoin investors carrying more than 1 billion DOGE saw their Supply Distribution plunge near the end of July, indicating that big-money entities exited from the market. What followed the selling was an extension of bearish price action for the asset.
The mood among the whales appears to have turned around in the past day, however, as the indicator’s value has seen a sharp surge instead. “Whales bought over one billion Dogecoin $DOGE in the last 24 hours!” notes Martinez. Given the timing of the buys, it’s possible that these humongous investors believe the current lows to be offering a profitable entry point into the memecoin. It only remains to be seen, though, whether this bet would pay off for the whales.
In some other news, memecoin Pepe (PEPE) has also seen a bullish development recently, as the analyst has pointed out in another X post.
From the chart, it’s visible that Pepe’s 1-day price has finished a Tom Demark (TD) Sequential setup with nine red candles. Such a pattern is considered to be a buy signal.
DOGE Price
Following a drop of almost 8% over the past week, Dogecoin has seen its price withdraw under the $0.20 mark.
