Dogecoin price increase signal: Whale net buy DOGE $1.08 billion

Recent on-chain data indicates strong accumulation by Dogecoin investors, a sign that could drive up the price of DOGE. Dogecoin whale has just increased their holdings to about $1.08 billion As analyst Ali Martinez pointed out in a recent post on X, DOGE whales have joined recent buying activities. The relevant indicator on the chain here is the 'Supply Distribution' from Santiment analysis company, which informs us about the total supply of Dogecoin that a specific group of wallets is currently holding. The addresses or investors are placed in these groups based on the amount of coins they hold in their balance. In the context of the current topic, the whale group is of interest, including those holding from 10 million to 1 billion DOGE. According to the current exchange rate of memecoin, the upper limit of the conversion range is $3.5 million and the lower limit is $350 million. Therefore, only eligible investors will be among the largest entities on the network. Holding a large amount of cryptocurrency naturally means having more power in the market, thus whales can play an important role in asset price movements. This makes the supply of these holders worth monitoring, as any changes in it can be reflected in cryptocurrencies. Below is a chart shared by analysts, showing the trend of supply distribution for Dogecoin speculators over the past month.

As shown in the chart above, the Dogecoin whales pushed the supply to its peak in early December, but then they reversed course and gradually sold off. A sudden slow distribution turned into a sharp decline in the indicator in the second half of the month, along with a significant drop in the price of memecoin. In terms of timing, it is likely that at least some responsibility for the subsequent cause was also borne by the previous cause. After the final sell-off during Christmas, the last whales have stopped selling, but they also did not start accumulating as their supply tends to move sideways. This has changed in the past few days as these giant entities have added a significant amount to their holdings. Specifically, the whales have bought a total of $1.08 billion in coins during this sudden spike in the index. Once again, the trend in whale distribution seems to be shifting towards the value of Dogecoin, showing a recovery. It is still unknown whether the whales will continue to support this price increase or not, or whether they will take quick profits, possibly killing the uptrend.