23 November 2023
These Dogecoin on-chain indicators may be the ones to watch to see if the meme coin has a chance of finding a reversal in the near future or not.
Dogecoin Large Holders Have Been Growing, Old Coins Have Come Alive
In a new post on X, the on-chain analytics firm Santiment has talked about how two on-chain metrics related to Dogecoin have been looking recently. The first indicator of relevance here is the number of DOGE addresses carrying at least 1 million tokens in their balances.
At the current exchange rate, this converts to about $75,800, so this range would include the large investors in the market. In particular, the sharks and whales would fall inside this group. These key investors can hold some influence in the market, so their movements can be worth following.
The below chart shows how the number of Dogecoin sharks and whales has changed over the last few months:
From the graph, it’s visible that the Dogecoin addresses carrying at least 1 million DOGE have registered some notable growth over the past month. During this period, shark and whale numbers on the network have increased by 121.
This would imply there has been interest in the memecoin from the large investors recently. Interestingly, the surge in the number of these addresses has only become sharper since DOGE topped out recently, implying that the sharks and whales have been taking advantage of the lower prices and buying more.
This is certainly a positive sign for a reversal in the asset’s price, as the humongous hands appear to be backing the cryptocurrency at the current levels.
There has also been a signal that may not necessarily be so positive, however. In the chart, Santiment has also attached the data for another metric, called the “age consumed,” which basically tells us about the movement occurring from the dormant tokens on the blockchain.
The dormant coins belong to the “long-term holders” (LTHs), who are the most resolute hands in the sector. When the age consumed metric spikes, it means that these LTHs have decided to finally break their silence.
It’s hard to say about the implications of such a trend on the meme coin’s price, but a possibility that’s always on the table is that the LTHs have in fact made their moves to sell the cryptocurrency.
As is apparent from the graph, the Dogecoin age consumed has registered a huge spike recently, implying that HODLers have been on the move. This can be a sign of selling, but Santiment has pointed out that more often than not, such spikes in the indicator signal a change in direction for the asset’s price.
Between these two signals, one bullish and the other perhaps a bit more mixed, it now remains to be seen how the price of DOGE develops in the coming days.
DOGE Price
Since hitting a top above $0.087 a few days back, Dogecoin has slipped down all the way towards $0.076.