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As Monday saw a 6% drop in the price of Dogecoin (DOGE), a new wave of bullish activity emerged on the chain of the popular meme cryptocurrency. According to data from IntoTheBlock, the net flow of DOGE into the wallets of large holders increased by more than 118% over the past day - from 67.85 million to 148.36 million tokens, which is equivalent to $14.84 million.
The metric shows how the positions of whales and investors with more than 0.1% of the supply of Dogecoin are changing. Basically, spikes in netflow mean that large players are building their positions, while declines indicate that positions are being reduced or sold.
Yuri Molchan
For example, we can see how the growth in the netflow of large DOGE holders preceded a spike in the price of the popular meme cryptocurrency as, in the last 24 hours, its quotations went up by over 1.5%. Currently, the price of Dogecoin is $0.1 per DOGE.
However, digging deeper, we can see that the real reason behind the rise is not the increase in inflows, but rather the decrease in outflows. During the period under review, outflows of DOGE from the wallets of large holders decreased by 45.9% to 111.41 million tokens.
Interestingly, the inflows also decreased, but only by 5.13%, and they still remained at 259.77 million DOGE.
Tomiwabold OlajideWhether this is the beginning of something bigger on the bullish side for Dogecoin remains to be seen.
However, some disturbance of calm in the quotes of the largest and most popular meme cryptocurrency is definitely worth waiting for now. This is due to the fact that the increase in on-chain activity is often a harbinger of trouble on the price chart.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
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