Data from the chain shows that the supply of Dogecoin whales has seen an increase recently, a sign that interest in large money accumulation in the memecoin has increased.
Dogecoin whales bought 160 million DOGE in just 96 hours
As highlighted by analyst Ali Martinez in an X afterthe Dogecoin whales have recently participated in net purchases. ‘Whales’ here refer to the large investors in the cryptocurrency who have a significant number of tokens in their portfolio balance.
Thanks to their large assets, this cohort can exert some influence on the market. As such, its behavior can often be worth keeping an eye on. Even if it may not directly affect the price of the asset, it can still contain hints about the sentiment among these giant entities.
Here is the chart shared by Martinez showing the recent trend in Dogecoin whale supply:
As shown in the chart above, the supply of Dogecoin whales has recently jumped. In total, during this accumulation wave, the whales loaded 160 million DOGE (worth approximately $17.7 million) within a 96-hour period.
Interestingly, the purchase of whales came after a significant price increase. Although the amount involved has not been too large, the fact that the group’s supply on the net is on an upward trend can of course still be a positive sign for the memecoin, because it means that these large investors have not yet turned to profit taking.
However, the indicator could still involve monitoring shifts in whale behavior in the coming days, as it wouldn’t take much for Dogecoin market sentiment to turn around.
In other news, Dogecoin has made its way into a possible parallel channel, as pointed out by Martinez in another X after. A parallel channel is a technical analysis pattern (TA) that forms when an asset trades between two parallel trend lines.
Parallel channels can be classified into a few different types based on the channel’s orientation relative to the graph axes, but in the context of the current discussion, the simplest parallel channel is of interest: a channel with trend lines parallel to the time axis.
The chart shows that Dogecoin’s 12-hour price may have followed such a pattern in recent months. Previously, the memecoin was stuck in the lower half of the channel, with the midline at $0.1018 proving to be a resistance barrier. However, the recent price increase has caused the asset to break out into the top half.
The analyst has noted that the next target for DOGE could be $0.1172, which corresponds to the channel’s high.
DOGE Award
Dogecoin rose to $0.113 on Sunday evening, but has returned to $0.110 to kick off Monday.