Dogecoin (DOGE) Market Mystery: On-chain Data Reveals Intriguing Holder Trend

Shift in Dogecoin Market Dynamics: Whales Reduce Holdings

On-chain data from IntoTheBlock reveals a notable shift in holder behavior in the Dogecoin (DOGE) market. Over the past year, the largest Dogecoin whales have been gradually reducing their holdings.

The data shows that the percentage of the total DOGE supply held by whale addresses with holdings of over 0.1% each has declined from 45.3% to 41.3%. This suggests that some of the largest holders of DOGE are lightening their positions, potentially altering the market dynamics.

In contrast, retail and mid-sized investors have increased their share of the total DOGE supply. As whale holdings diminish, these smaller investors now command a larger portion of the total supply.

Price Action and Market Sentiment

At the time of writing, Dogecoin was posting a rebound, up 3.14% in the last 24 hours to $0.123. However, the price had dropped to lows of $0.113 yesterday in a two-day decline.

Crowd sentiment for DOGE has plummeted following the price decline, according to Santiment, creating an opportunity for patient traders.

On-Chain Support and Resistance Levels

At its current trading level, DOGE is positioned above a significant on-chain support level. According to IntoTheBlock, 41.78 billion DOGE were acquired at an average price of $0.103, indicating a high demand zone that might be crucial if the market continues to weaken.

On the upside, DOGE may encounter resistance near $0.137, where 10.9 billion DOGE are now held at a loss.