Dogecoin has continued to rebound over the past few days after falling to the mid 0.13 dollar range, and its on-chain activity has also begun to show an interesting upward trend. Santiment's data shows that while the price is still struggling to find upward momentum, some large holders have quietly increased their holdings by hundreds of millions of Dogecoin.
This change in wallet behavior comes at a time when Dogecoin's recent performance has been lackluster, failing to excite bullish traders, which makes this quiet accumulation even more noteworthy.
Accumulation of Dogecoin whales: What the data indicates
Data from Santiment shows that the number of addresses holding between 1 million and 100 million Dogecoins (DOGE) has rapidly increased. Specifically, the data indicates that the total amount of DOGE held by this group has grown from 27.79 billion coins on December 3 to 28.34 billion coins at the time of writing. This means that in just 48 hours, the number of DOGE increased by approximately 550 million coins, which is a significant influx of capital even for a large cryptocurrency like Dogecoin.
This trend suggests that these mid to large holders see the current price as an appropriate entry point. Large-scale purchases by these 'whale-level' investors typically precede price consolidation phases or, in some cases, precede price increases, especially when retail sentiment is weak and market sell-off volume decreases.
Interestingly, this wave of buying began on December 3 when Dogecoin dropped to around $0.13 and rebounded at this price level, allowing this meme coin to reach an intraday high of $0.1504 in the past 24 hours.
Is Dogecoin about to welcome a wave of upward momentum?
The accumulation behavior of large holders can subtly but profoundly reshape the market landscape. First, it reduces the circulating supply available to ordinary retail investors, tightening supply and potentially supporting price stability or driving prices up. Second, it reflects market confidence. Even if the price trend has not yet shown an upward trajectory, large holders demonstrate confidence in Dogecoin's long-term value.
Additionally, this recent wave of buying marks the first significant shift in sentiment among the whale group.
After weeks of steady distribution, Santiment's data shows that these wallets have seen a decline in balance since mid-October, a trend that coincides with a decrease in large transactions, leading to the lowest trading activity in two months.
While price accumulation may lay the groundwork for a rebound, Dogecoin still faces some structural challenges. Technical analysis indicates that $0.138 is the key price level to confirm whether a bottom has formed. In the coming weeks, if the price remains above this area, it will provide stronger evidence that the worst of the downturn is over.
Meanwhile, cryptocurrency analysis firm Bitcoinsensus points out that the peak of the current Bitcoin cycle may be between $0.70 and $0.75. This price target aligns with other technical forecasts for this 'meme coin'.
