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On-chain data shows the Dogecoin shark and whale wallets have been increasing in number recently, a sign that could be bullish for DOGE’s price.
Dogecoin Sharks & Whales Have Been Expanding Despite Price Decline
According to data from the on-chain analytics firm Santiment, Dogecoin has recently seen a rise in a couple of important indicators. The first metric of relevance here is the “Supply Distribution” of the DOGE wallets carrying more than 1 million tokens.
The Supply Distribution tells us, among other things, the number of addresses that belong to a particular coin range. The indicator for the 1 to 10 coins group, for instance, measures the amount of holders who own at least 1 and at most 10 DOGE in their balance.
The 1 million+ DOGE cohort, which is the range of focus here, includes two key investor groups: sharks and whales. At the current exchange rate, the cutoff for the range converts to around $166,600. This is clearly quite a significant amount, which is why the entities belonging to the sharks and whales are considered important on the network.
Now, here is the chart that shows the trend in the Dogecoin Supply Distribution for the 1 million+ coins range over the last few months:
As displayed in the above graph, the Dogecoin Supply Distribution of the sharks and whales observed a plunge when the bearish action in the memecoin’s price first started in January.
Since the start of February, however, the indicator has reversed its direction and has been following an upward trajectory. Interestingly, this wallet increase has come despite the fact that the asset’s decline has only furthered during the period.
The trend would imply that, although the big-money investors panic sold when the drawdown first began, they have since shifted their attention to accumulating the dip instead.
In total, the shark and whale wallets have gone up by 62 (around 1.24%) since the beginning of February and are now not far from the peak witnessed back in January.
The increase in the large wallets isn’t the only positive sign Dogecoin has seen; there has also been bullish development in another indicator attached in the chart. The metric in question is the Active Addresses, which keeps track of the total number of DOGE addresses taking part in some kind of transaction activity on the blockchain every day.
From the graph, it’s visible that the Dogecoin Active Addresses has jumped to a 4-month high recently, suggesting a large amount of users have been making transfers on the network.
While the increase in the shark and whale wallets has been occurring for a while now, the signal in the Active Addresses is a more recent one. It would appear that the current low prices may have finally caught the attention of the masses, who are now coming active to make their moves.
DOGE Price
At the time of writing, Dogecoin is trading around $0.166, up around 4% in the last seven days.
