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Something interesting is brewing behind the scenes of Dogecoin (DOGE), according to data from IntoTheBlock. As on-chain statistics indicate, the popular meme cryptocurrency has seen a spike in flows into major holders' wallets over the past 24 hours. Going from 50.29 million DOGE to 341.14 million DOGE, this growth reflects a 678% increase in just one day.
It may signal that some big players with more than 0.1% of the coins in circulation are buying up Dogecoin. Many large holders may make purchases on central exchanges and then move their coins into cold storage.
Mushumir ButtWhen we see spikes in large holder inflows, it could be a sign that the price is bottoming out, as these addresses tend to buy in bulk after significant corrections.
However, some of them are seemingly reducing their DOGE holdings, as outflows from such wallets increased by 300% - from 52.61 million to 185.79 million DOGE.
Nevertheless, the net flow still increased significantly in the last 24 hours, going from negative to as much as 155.36 million DOGE.
Dogecoin (DOGE) price outlook
Speaking of Dogecoin's price bottoming out, let's take a look at its chart. As you can see, over the past few hours, DOGE has been experiencing roller coaster price action, falling and rising by at least 4% in a single day.
Currently, the price of a major meme coin is quoted at $0.0956, which is actually near its local bottom set yesterday, when the price fell as low as $0.091 - the lowest price point since early August.
Godfrey BenjaminOften a network eruption like this, with large holders of DOGE, serves as a precursor to major price shifts. Whether this is the case with Dogecoin this time around remains to be seen.
Arman Shirinyan
Dan Burgin
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