Dogecoin: Can whale accumulation offset DOGE’s price decline?

Large Wallets Accumulate DOGE Amidst Price Decline

Despite a slight price increase, the overall trend for Dogecoin (DOGE) remains negative. Over the past week, DOGE has primarily experienced downtrends, with positive momentum for only three of the seven days.

Despite the negative price movement, significant accumulation has been observed in certain wallets. An analysis of the Dogecoin daily timeframe chart shows that DOGE was trading at $0.158, with an increase of less than 1%. It was also trading above its short Moving Average (yellow line), indicating a temporary positive trend.

However, the Relative Strength Index (RSI) indicates a shift from the bull trend to a weak bear trend. For DOGE to revert to a positive trend, it needs to sustain a more positive price momentum.

Whale Dogecoin wallets have been accumulating more tokens despite the price decline. Santiment's supply distribution chart reveals that over 200 million DOGE has been accumulated by these addresses since late May. Wallets holding between 100 million and 1 billion DOGE have increased their holdings, as have wallets holding between 100,000 and 1 million DOGE.

However, the number of holders has remained steady at around 6.6 million, indicating that the accumulation is being done by existing wallets. The volume has also declined slightly in recent days, suggesting a decrease in activity.

Overall, while the price trend for Dogecoin remains negative, large wallets have been accumulating more tokens, suggesting a possible shift in sentiment towards DOGE.