Miami, Florida – Dogecoin, a popular cryptocurrency, has seen a significant increase in accumulation by whales who hold 100 million to 1 billion coins since May 28th. Data from Santiment shows that over $100 million worth of Dogecoin has been purchased by these large holders, leading to a rise in supply held by this cohort from 20.69% to 21.40%.
This surge in buying activity suggests a growing demand for Dogecoin, potentially setting the stage for another price rally. While Dogecoin’s price has remained relatively stable at $0.15 in the past week, the increase in whale accumulation could indicate a potential breakout, with the cryptocurrency aiming to surpass the $0.20 mark, similar to its performance in March.
Analysts suggest that Dogecoin would need to meet certain metrics to confirm this bullish trend. If these metrics align, the price could see a significant uptrend. On the contrary, failure to meet these criteria could result in a plunge to as low as $0.12, as observed through the Mean Coin Age (MCA) analysis.
Recent data reveals that the 90-day MCA has been on the rise since early April, indicating a movement of old coins to different wallets, leading to a price range between $0.13 and $0.16 for Dogecoin. However, in recent days, the metric has started to decline, suggesting that more holders are opting to hold onto their coins rather than trading them on exchanges.
Furthermore, on-chain data shows a decrease in the number of Dogecoins circulating in the market, with only 357.04 million coins engaged in transactions. This lower circulation could alleviate selling pressure, potentially setting the stage for a price rally. Additionally, with 83% of Dogecoin holders currently in profit, this percentage could rise further once the cryptocurrency starts to climb up the charts.
Overall, the increase in whale accumulation, coupled with decreasing selling pressure and lower circulation, indicates a positive outlook for Dogecoin’s price potential. While a breakout is not guaranteed, the signals from these metrics suggest that a rally could be on the horizon, possibly leading to a higher ratio of profitable holders in the near future.