Recent on-chain data indicates a growing trend among Dogecoin (DOGE) shark and whale wallets, suggesting a bullish outlook for the cryptocurrency despite recent price declines.
Dogecoin Sharks & Whales Have Been Expanding Despite Price Decline
According to data from the on-chain analytics firm Santiment, significant metrics for Dogecoin have shown a positive uptick in recent months. Particularly notable is the Supply Distribution of DOGE wallets that hold over 1 million tokens.
The Supply Distribution metric reveals the number of wallets within specific coin ranges, such as the group owning between 1 and 10 DOGE. The focus here, however, is on the 1 million-plus DOGE cohort, which includes two pivotal investor segments: sharks and whales. At present values, this threshold equates to approximately $166,600, underscoring the significance of these entities within the Dogecoin ecosystem.
The accompanying chart illustrates a trend in the Supply Distribution for wallets holding 1 million or more DOGE over the past several months:
As shown in the graph, the Supply Distribution for sharks and whales witnessed a decline at the onset of bearish activity in January.
However, since early February, this indicator has begun reversing course and trending upward. Notably, this growth of wallets has occurred concurrently with continued price decline, suggesting that while larger investors may have initially panicked, they have since shifted their strategy to accumulate during the dip.
Since February began, the number of shark and whale wallets has increased by 62, a rise of approximately 1.24%, approaching levels last observed in January.
In addition to the increase in large wallets, another positive sign for Dogecoin is the rise in Active Addresses, which tracks the total number of DOGE wallets engaged in transaction activities each day.
The data indicates that Dogecoin Active Addresses have surged to a four-month high, reflecting a growing number of users initiating transfers on the network.
While the uptick in shark and whale wallets has been a consistent trend, the signal regarding Active Addresses is a more recent development. This suggests that the current low prices may have attracted broader participation from the community, with more users becoming active and seizing opportunities.
DOGE Price
As of this writing, Dogecoin is trading around $0.166, representing an increase of approximately 4% over the last week.
