Dogecoin whales have become more active over the last 24 hours
According to InTheBlock data shared by a prominent crypto analyst, 3.89 million addresses currently hold Dogecoin. While that may sound impressive, three months ago that number stood at 4.55 million. However, the drop in the number of holders may not have a direct impact on the token in terms of market price. But from a primary growth perspective, this can be a key sign.
As indicated by WhaleStats’ analysis of the top 100 BSC whales, Dogecoin remains among the top 10 holdings by Binance whales, who now control 237,474,203 tokens, or $33,212,182 worth of Dogecoin at the current exchange rate. At press time, Dogecoin was changing hands at $0.114, nearly 3% up on the day.
After Tesla CEO Elon Musk announced that he would not be selling his cryptocurrency holdings, the price of the cryptocurrency joke Dogecoin soared by more than 9%. Musk delivered a veiled swipe at MicroStrategy CEO Michael Saylor, who predicted that weaker currencies would fall and the flight of capital from other assets into Bitcoin would “intensify”.
Musk moved to Twitter to question his followers about the “likely inflation rate” over the next few years after the U.S. Consumer Price Index (CPI) jumped 7.9% from a year ago, the highest level in more than 40 years.
Dogecoin accumulation is net positive
Top Dogecoin holders appear to be picking up discounted tokens amid the current market volatility regarding near-term price action for cryptocurrencies. It may be worth noting that every market cycle has an accumulation phase, during which prices flatten out and contrarian investors see an opportunity to buy low.
As per IntoTheBlock data, Dogecoin whales have become more active over the last 24 hours as the number of large transactions rose by 81%. Spikes in large transactions often point to high activity among institutional players, or whales, who are either buying or selling.
Dogecoin’s profitability, according to IntoTheBlock data, remains at 53%. More in-the-money addresses should benefit the network as holders are less inclined to sell to break even their positions.
