Dogecoin has just witnessed a rally of around 10% after on-chain data signaled a mass exodus of holders from the DOGE network.
Dogecoin Has Seen A Jump Of Almost 12% Over The Past Day
This week has brought bullish winds in the cryptocurrency sector as a whole, but among the top coins, one asset in particular has stood out: Dogecoin. The meme-based token has managed to surpass the $0.127 level after registering an uplift of nearly 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
For perspective, Bitcoin (BTC) is up around 4% in the same window, while Shiba Inu (SHIB), DOGE’s rival-coin, is up about 5%. The asset has also performed well in terms of weekly returns, with only Bitcoin Cash (BCH) with its 12% returns coming close to DOGE’s 14% profits.
The DOGE market cap has now grown to $18.5 billion, as the below table displays.
The current standing of DOGE in the wider cryptocurrency sector | Source: CoinMarketCap
DOGE at the 8th position on the top cryptocurrency list now has a comfortable gap over Tron (TRX) in the 9th place, but the coin is still nowhere near XRP (XRP) in 7th, so its place in the sector is unlikely to change in the near future. The latest Dogecoin rally has come under interesting circumstances, as on-chain data indicates that a large amount of holders had only recently decided to give up on the memecoin.
DOGE Total Amount Of Holders Has Plunged Recently
According to data from the on-chain analytics firm Santiment, the Total Amount Of Holders has registered a steep drop for Dogecoin recently. The “Total Amount Of Holders” here refers to an indicator that, as its name suggests, keeps track of the total number of DOGE addresses that are currently carrying a balance.
Below is the chart shared by the analytics firm that shows the trend in this DOGE metric over the last few months:
The value of the metric appears to have seen a plummet recently | Source: Santiment on X
From the graph, it’s apparent that the Dogecoin Total Amount of Holders has seen a significant decline recently, implying that a large amount of users have decided to clear out their holdings on the network.
More specifically, around 106,600 addresses have emptied themselves out during the past week, which has sent the indicator down to 6.62 million, the lowest value since April. It’s possible that these were the investors fed up by the bearish price action of the memecoin, so they decided to leave for greener pastures. In an ironic twist of fate, however, Dogecoin has shown a better surge than any of the other top coins since these traders have left.
The capitulation from the weak hands also means that the current rally could have higher chances of success, as the coins released by these investors may have been picked up by traders with a stronger conviction, who could be willing to sit on their profits for a while longer.
Featured image from Dall-E, Santiment.net, chart from TradingView.com
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