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In the past 24 hours, Dogecoin (DOGE), the most popular meme cryptocurrency, has been witness to worrying on-chain developments. According to data provided by IntoTheBlock, there has been a notable decline of almost 86% in the Large Holders Inflow metric. This metric tracks the movement of funds into addresses held by large investors, or whales.
Large Holders Inflow fell from 428.72 million DOGE to 62.63 million DOGE, equating to approximately $9.45 million. Such a decrease indicates a substantial reduction in buying activity among these major stakeholders. Typically, a decrease in this metric suggests a decrease in purchasing activity, as many large holders tend to acquire assets on centralized exchanges before transferring them to cold storage.
Additionally, Large Holders Netflow, which provides insight into the position changes of whales and investors holding over 0.1% of the supply, has seen a significant decline. Last week, it entered positive territory at 411.69 million DOGE but has since fallen to 31.71 million DOGE. This shift in netflow suggests a change in sentiment among large players, potentially indicating reduced positions or selling.
What about Dogecoin (DOGE) price?
Simultaneously, Dogecoin's price has seen mixed trends over the past day, with a loss of 2.57% recorded yesterday and a further 1.46% decline today. Presently, the cryptocurrency is trading at $0.152 per DOGE.
The implications of the decrease in whale activity on the price of Dogecoin dynamics are worth noting. Historically, the actions of large holders have had a significant impact on market movements. Therefore, the sudden decline in whale activity could lead to increased market volatility or signal changes in sentiment among institutional investors.