Dogecoin holders are working tirelessly to change the crypto’s trajectory after previous weeks of stagnation and disinteresting price action. Notably, on-chain data suggests that large holders of Dogecoin are working on extending a promising price rally last week. Data insights from IntoTheBlock (ITB) reveal that both large holder netflow and exchange netflow are showing significant upticks, suggesting an increased level of activity and accumulation among DOGE whales.
Dogecoin Whales Increase Activity
One of IntoTheBlock’s best indicators of whale activity, the “Large Holder Netflow,” recently saw an uptick from negative to positive readings. The large holder netflow tracks the difference between the amount of DOGE tokens entering and those leaving addresses at least 0.1% of the circulating supply. The higher the inflow compared to the outflow, the higher the netflow.
This trend is typically interpreted as bullish for the cryptocurrency in question, as it implies that whales are employing accumulation strategies. However, periods of negative readings indicate that outflows are surpassing inflows into whale addresses, which can be concerning for the price outlook.
Recent data from ITB reveals that the netflow saw a dramatic surge, skyrocketing from a negative zone of -2.23 million DOGE to an impressive 20.66 million DOGE within just the last 24 hours. This 1000% increase suggests whales have increased their activity massively within this timeframe. Although this level of netflow may appear modest when compared to the massive DOGE trading volumes seen during previous market surges, it represents an important initial step following an extended lull period for the popular meme coin.
Interestingly, this uptick in DOGE whale activity coincides with a noteworthy decline in balances across various crypto exchanges. In particular, the aggregated exchange netflow plummeted from 28.25 million DOGE to a negative -43 million DOGE over the same 24-hour period.
DOGE Price Outlook
This dual trend of increasing whale accumulation coupled with decreasing exchange balances indicates that large holders are moving their assets off exchanges, perhaps in anticipation of a bullish rally.
At the time of writing, DOGE is trading at $0.1086 and is up by 1.96% in the past 24 hours and 7.78% in the past seven days. Despite the price uptick, DOGE is yet to break above $0.11, which is a price point that has proven difficult to surmount since the beginning of September.
Technical analysis of the DOGE price reveals $0.11 to be a crucial price point in the outlook for a bullish rally. The only thing left now is for DOGE to break out above $0.11. If it can manage to exceed the $0.11 mark, it may trigger more accumulation from large holders and could significantly alter its price movement for the rest of the year.
Featured image created with Dall.E, chart from Tradingview.com
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