- The recent activity of Dogecoin’s (DOGE) significant holders is stirring the crypto market.
- Various data sets suggest that accumulation practices might mitigate potential price drops.
- An astounding 311% drop in large holders’ netflow over the past week hints at looming price pressures.
Discover why the shifts in Dogecoin’s large holder activities could impact its price trajectory significantly. Stay informed with the latest insights.
Behavioral Shift Among DOGE Major Holders
There has been a notable behavioral shift among Dogecoin’s substantial holders, as recent data points to a significant sell-off. If this selling trend persists, DOGE’s price may face additional downward pressure.
As of the latest figures, Dogecoin is valued at $0.12, reflecting a 23.74% decline over the past month. This ongoing sell-off trend could potentially push the price further down to around $0.10.
To better understand whether this bearish momentum will continue, we examined the Mean Coin Age (MCA). The MCA measures the average age of all coins, accounting for their purchase prices.
Crucially, the MCA indicates trading activity among older coins, specifically those held in wallets for at least 155 days. A spike in the MCA suggests increased trading activity, often leading to sales on exchanges. Since June 25, Dogecoin’s 90-day MCA has been decreasing, indicating these older coins are moving into self-custody rather than being sold.
These findings suggest that the current sell-off by large holders may primarily involve those who have accumulated DOGE in recent months.
Market Participants Await Better Opportunities
Taking into account various metrics and their implications on the price, Dogecoin’s trading could stay range-bound. Specifically, the price might fluctuate between $0.11 and $0.13 shortly.
What about market participants? To understand their behavior, we analyzed the Exchange On-Chain Market Depth, which assesses the number of traders looking to buy or sell a cryptocurrency on the top 10 exchanges.
If there are more traders looking to sell (ask) than buy (bid), a price drop could follow. Conversely, a higher number of bids suggests potential price appreciation. Currently, data from IntoTheBlock indicates that the bid volume for Dogecoin surpasses the ask volume significantly.
Should this trend of traders aiming to acquire DOGE at lower prices continue, a price rally may be on the horizon, potentially pushing DOGE to around $0.15 in the forthcoming weeks. However, this prediction would be invalidated if the number of bidding traders decreases.
Conclusion
In summary, Dogecoin’s price is experiencing significant influences from the activities of large holders and overall market sentiment. While the sell-off by recent accumulators might press the price downward, the accumulation pattern observed could stabilize or even boost the price. Whether DOGE will witness a substantial uptick or continue its bearish trend largely depends on the balance between market bids and asks. Observing these metrics closely in the coming weeks will be crucial for anticipating Dogecoin’s next big move.
