In a surprising twist in the Dogecoin (DOGE) market, on-chain data highlights a significant shift in holder behavior. A recent analysis by IntoTheBlock shows that the largest Dogecoin whales have been steadily reducing their holdings over the past year. This trend indicates that major holders are lightening their positions, which could alter market dynamics.
Over the past year, the percentage of the total Dogecoin supply held by individuals owning more than 0.1% each has decreased from 45.3% to 41.3%. This reduction underscores that some of the largest holders of Dogecoin are selling off portions of their assets. This shift in whale behavior suggests a potential change in market influence, as these major holders typically have significant sway over price movements.
Rise In Retail And Mid-Sized Investors
Conversely, the same period has witnessed a notable increase in the share of Dogecoin held by retail and mid-sized investors. As whale holdings diminish, smaller investors now control a larger portion of the total supply. This growing participation from retail and mid-sized investors highlights a significant market shift, potentially leading to more decentralized ownership and diverse market activities.
Related article: Dogecoin Rallies After Whales Accumulate 6.4 Billion DOGE
As Dogecoin ownership evolves, market participants will be closely watching to see how these changes affect price movements and overall market activity. Currently, Dogecoin’s price is rebounding, up 3.14% in the last 24 hours to $0.123, after hitting lows of $0.113 following a two-day decline. Despite the recent drop, crowd sentiment for Dogecoin has plummeted dramatically, according to Santiment, creating an opportunity for patient traders.
On-Chain Support And Resistance Levels
At its current trading level, Dogecoin sits above a significant on-chain support level. IntoTheBlock data shows that 41.78 billion DOGE were bought at an average price of $0.103. This high demand zone could be crucial if the market weakens further. On the upside, Dogecoin may encounter resistance near $0.137, where 10.9 billion DOGE are now held at a loss.
Related article: Dogecoin Surges on Bullish Sentiment, But Whales Cast a Shadow
These evolving dynamics in Dogecoin ownership are drawing significant attention from market participants. The shift from whale to retail and mid-sized investor dominance could lead to new patterns in market behavior.
As these changes continue to unfold, the impact on Dogecoin’s price and overall market activity remains a key focus for traders and analysts alike.
