Dogecoin investors, during recent market movements, saw the price drop from $0.1686 to $0.1423 and accumulated DOGE. Recently, on May 6th, DOGE moved above the price level of $0.168, which brought 5.21 million addresses into a profitable position. However, after this, the situation reversed. A minor correction in the price was observed throughout May 7th. According to on-chain data provided by Santiment, DOGE whales took advantage of this drop and purchased 265.86 million DOGE tokens.
DOGE Accumulating Whales
According to data from the on-chain platform Santiment, addresses holding between 100 million and 1 billion DOGE increased their holdings by 1%, capturing 21% of the total supply on May 7th.
Interestingly, the number of tokens held by these whales increased by 265.86 million DOGE, valued at approximately $41.2 million. This increase was significant in the market compared to the 342 million DOGE that left their possession the day before the whale entry.
The latest data reveals that accumulation on exchanges is still ongoing. Meanwhile, recent data shared by the whale tracking platform Whale Alerts indicates that 120 million DOGE tokens, valued at 18 million dollars, were purchased from the cryptocurrency exchange Robinhood and transferred to wallets within a few hours.
The Significance of DOGE and Whale Movements
Whale activity and sentiment are essential for any cryptocurrency, especially for a meme token like Dogecoin, whose value is mostly driven by hype and market sentiment rather than demand for utility. These whales typically move the market, and accumulation or selling by a few large traders can alter the sentiment of other investors.
At the time of writing, DOGE was trading at $0.1448. The price correction that occurred between May 6th and May 9th seems to be continuing. Despite this, the price is still above the $0.143 level it jumped to during that period.
Currently, DOGE has seen a 4% decrease in the last 24 hours and a 4% decrease over the last seven days. Consequently, this suggests that the accumulation could have contributed to a bullish effect on the DOGE price.
If the price remains above the mentioned $0.143 and bulls continue accumulating, Dogecoin’s price could move towards the $0.16 and $0.20 resistance levels. However, if a reversal occurs, DOGE could drop to the next support level at $0.13.
