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Despite a sharp decline in Dogecoin’s price, large investors, or ‘whales’, are showing significant accumulation, hinting at long-term confidence in the cryptocurrency’s value.
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In the last week, whale holdings of DOGE increased considerably, indicating their belief in a potential recovery despite recent market downturns.
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“The strategic accumulation by whales often suggests a forthcoming market shift,” asserts a recent analysis by COINOTAG.
Whales are aggressively accumulating Dogecoin despite a recent price drop, signaling potential stability and future price recovery in the cryptocurrency market.
Dogecoin’s Wider Market Context with Whale Accumulation
The trend of whale accumulation in Dogecoin is particularly interesting given the recent price fluctuations. After hitting a high of $0.220 on March 3, 2025, DOGE’s price plummeted to $0.168 by March 21, a decline of 24%. However, throughout this volatility, whale investors increased their total holdings from 10.28 billion to 10.51 billion DOGE in just seven days. This strategic move seems to reflect a calculated approach to leverage potential undervaluation amid market uncertainty.
Insights on Whale Activity and Market Sentiment
The behavior of these whales raises important questions about market dynamics. Historically, when large holders begin accumulating assets during downward trends, it is often a precursor to a market rebound. Notably, during the recent price downturn, there was a significant increase in holdings among whales owning between 1,000,000 and 10,000,000 DOGE, which rose from 10.38 billion to 10.45 billion DOGE.
This accumulation not only demonstrates their confidence but also highlights a potential shift in market sentiment. As these investors build their positions, it could lead to a recovery phase where retail investors feel encouraged to step back into the market, thus fostering higher liquidity and price stabilization.
Source: X
Also notable is the drastic decline in DOGE’s active addresses from a peak of 7.02 million in November 2024 to just 482,000 by March 22, 2025. This sharp drop signals reduced retail engagement, a concern for market health. However, as whales accumulate DOGE, they might catalyze additional retail interest, as historically, this type of buying behavior has resulted in increased market activity.
Understanding Dogecoin’s Current Volatility Landscape
The volatility levels for Dogecoin have notably stabilized. Following a peak at 0.125 in November 2024, it has reduced significantly to just 0.008 by March 22, 2025. This reduction in volatility could imply that the coin is moving into a phase of stability, often paving the way for investors to reassess their strategies moving forward.
Source: Santiment
Conclusion
In summary, the recent activity by Dogecoin whales amid a price decline suggests a noteworthy degree of confidence in the asset’s future. The accumulation of approximately 120 million DOGE during such bearish conditions may indicate a strategic long-term outlook, potentially stabilizing prices and reigniting interest from retail investors. As the market response evolves, the conditions could foster a healthier landscape for DOGE, benefiting those prepared for potential recovery.
