Dogecoin (DOGE) Plunges 92.5% in Key On-Chain Metric, What's Going On?

Dogecoin Netflow Reverses: Large Holders Accumulate Less

As revealed by IntoTheBlock's on-chain statistics, the netflow of Dogecoin (DOGE) to large holder wallets has significantly decreased in the past 24 hours. The inflow-outflow ratio of wallets holding at least 0.1% of the total supply has plummeted from 375.4 million to 27.98 million tokens.

This decline is primarily attributed to a decrease in inflows, not an increase in outflows. Whale wallet inflows have dropped from 450.99 million DOGE to 66.35 million DOGE. This is a positive sign, indicating a reduction in activity and interest rather than a bearish sell-off.

While the lack of activity inhibits price increases, there is no indication of increasing selling pressure.

Dogecoin Price Outlook

DOGE has retested a key support level of $0.125 per token. If it holds, bullish sentiment may prevail. However, if it falls below this level, it could become a significant resistance.

The actions of major holders and the overall market narrative will be crucial in determining the price trajectory.