Dogecoin (DOGE) is undergoing a significant shift in its investor base. On-chain data analysis by IntoTheBlock uncovers a surprising trend. Large holders, also known as “whales,” have been steadily reducing their DOGE holdings over the past year. This translates to a substantial decline – dropping from 45.3% to 41.3% – in the total supply held by these major investors.
Read Also: Dogecoin, Shiba Inu Stumble In Meme Coin Mayhem
It is yet unknown if the whales are cashing out entirely or simply taking profits. However, these actions are slowly transforming the Dogecoin landscape.
Retail Therapy For Dogecoin: Smaller Investors Step Up
However, this whale retreat isn’t necessarily a bad omen for Dogecoin. While large investors are shedding their DOGE, a new wave of participants is emerging to fill the void. The data reveals a notable rise in the share of DOGE held by retail and mid-sized investors. This suggests growing interest from smaller players who are accumulating DOGE as whale holdings shrink.
Price Impact: Will The DOGE Shift Hold?
The long-term effects of this investor reshuffle on Dogecoin’s price trajectory is not yet determined. In the immediate term, DOGE did manage a welcome rebound, surging 3.14% in the last 24 hours. This uptick comes after a two-day dip that saw DOGE touch lows of $0.113. It is yet unknown if the coin can sustain its short-lived rally.
Support Levels: A Buying Opportunity?
Despite the recent price volatility, Dogecoin is currently trading above a crucial support level of $0.103. According to IntoTheBlock data, a significant amount of DOGE (41.78 billion) was acquired around this price point, indicating strong historical buying pressure. This zone could act as a buffer if the market weakens further. Furthermore, it could potentially present a buying opportunity for investors with a strong risk tolerance and a long-term view on DOGE.
Resistance Ahead: Can DOGE Break Through?
Looking ahead, Dogecoin might face resistance near $0.137. Santiment data reveals that a large number of DOGE (10.9 billion) are currently held at a loss around this price level. A breakout above this resistance zone could signal a return of bullish momentum for DOGE.
This scenario could attract further investment from both retail and institutional players. However, if the price fails to overcome this hurdle, it could lead to renewed selling pressure and potentially test the aforementioned support level.
