Dogecoin holders are accumulating DOGE tokens amid the recent price decline from $0.1686 to $0.1423. DOGE recently prices have risen breaking $0.168 price level on May 6 to push 5.21 million addresses in profitability. However, the cryptocurrency reversed and underwent a slight correction throughout May 7. According to on-chain data from Santiment, large DOGE holders took advantage of this drop and added approximately 265.86 million DOGE tokens to their wallets.
Whales accumulating DOGE
According to data From Santiment, an on-chain analytics platform, DOGE addresses holding between 100 million and 1 billion DOGE recently saw their cumulative holdings increase by 1% on May 7 to reach 21% of the total supply. Interestingly, the number of tokens held by this cohort of traders increased by 265.86 million DOGE, worth approximately $41.2 million. This increase, compared to their holdings from the previous day, indicates a notable change from the previous outflow of 342 million DOGE from large holders.
Recent on-chain data suggests that this accumulation exchanges are still in progress. Interestingly, whale alert data indicates an example of an accumulation of 120 million DOGE tokens worth $18 million from crypto exchange Robinhood over the past few hours. This continued accumulation suggests that a few whales are still bullish on DOGE and positioning themselves for when their bullish outlook finally materializes.
Santiment
Why is this important for Dogecoin?
Whale movement and sentiment are essential for any cryptocurrency, especially for a meme token like Dogecoin, whose value is primarily determined by hype and market sentiment and not by a demand for its utility. These whales typically move the market, and a build-up or sell-off by a few large traders could change the sentiment of other investors.
At the time of writing, DOGE is trading at $0.1516. The price correction between May 6 and 9 appears to have ended after rebounding to the $0.143 level. Currently, DOGE is up 3% over the past 24 hours and 14% over the past seven days. Therefore, this shows that the accumulation may have contributed to a bullish effect on the price of DOGE.
On a longer time frame, the $0.143 price level constitutes a strong support level for DOGE. The recent rebound could be a starting point for the next leg towards new highs this month. Continued accumulation from the bulls could push Dogecoin price past the $0.16 and $0.20 resistances. This, in turn, could lead to DOGE finally pump on it its current all-time high and eventually reached $1. For this to happen, many bullish factors, besides accumulation, need to be in place. On the other hand, a bearish reversal could see DOGE fall to the next support at $0.13.
According to Santiment, most be careful around the parts even goes into TRUMP, TURBO, PONKE and MYRO.
DOGE Price above $0.15 | Source: DOGEUSDT on Tradingview.com
Featured image from Markets.com, chart from Tradingview.com
