On-chain data shows that Dogecoin whales have recently participated in a significant number of sell-offs, a potential reason behind the memecoin’s decline.
Dogecoin whales have lost 440 million tokens in the last 72 hours
As analyst Ali Martinez pointed out in a new post on X, whales have reduced their supply of Dogecoin in recent days. The indicator cited by the analyst is the “Supply Distribution” of the on-chain analysis company Santiment, which tells us the total amount of DOGE that investors belonging to a certain range of coins hold overall.
In the context of the current topic, the traders of interest are the “whales”. The range of their portfolio is generally defined as 10 to 100 million tokens. At the current DOGE exchange rate, the lower end converts to $1.8 million and the upper end converts to $18 million. Given the scale, only holders of large sums of money would qualify for the group.
Such investors can exert a certain degree of influence on the market, so it is worth observing the movements related to them. Their behavior does not always impact the price of the memecoin, but can still be revealing of the sentiment of this key group.
Now, here is the graph shared by Martinez showing the trend of the distribution of the whales’ Dogecoin supply over the last few months:
As shown in the chart above, Dogecoin whales have recently seen a sharp decline in their supply, indicating that these giant holders have spread out. In total, the group poured in 440 million DOGE (worth $81.4 million) from its collective holdings in the last 72 hours. On top of this trend, the price of DOGE has fallen, suggesting that the whale sell-off may have had a role to play.
The supply distribution of this group could now be monitored, as the next direction could potentially hold hints as to what is to come for the cryptocurrency’s price.
Earlier in the week, Martinez shared another chart related to Dogecoin, this one shows a technical analysis (TA) pattern within which DOGE has traded on the 12-hour time frame.
From the chart, it is visible that the pattern in question is an ascending channel, a type of consolidation channel that appears whenever an asset trades between two upward-sloping parallel trend lines.
The channel support line is located at $0.18. In the post, the analyst highlights that maintaining this level could be crucial for DOGE. After the whale sell-off, the coin is now testing the level again, with a brief dip below it on Thursday as well, before the memecoin recovered above it on Friday.
“If the bulls defend it, next targets: $0.25 and $0.33,” Martinez said.
DOGE Price
At the time of writing, Dogecoin is floating around $0.185, down nearly 6% over the past seven days.
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