Large Dogecoin Wallets Show Strong Accumulation Despite Market Volatility

The number of wallets holding over 1 million DOGE has increased by 62 since February, representing a 1.24% rise in major Dogecoin holders. This significant accumulation suggests confidence among long-term investors, even amidst recent market volatility. Daily active Dogecoin addresses also surpassed 150,000, reaching their highest level since mid-November. This surge in network activity, coupled with the growth in large wallet holdings, points towards potential price stabilization.

Dogecoin experienced considerable selling pressure during a two-month crypto retracement. However, recent data from Santiment reveals a positive shift. The increase in wallets holding at least 1 million DOGE, combined with the four-month high in active addresses, indicates sustained investor interest and ongoing accumulation. While price volatility persists, on-chain metrics suggest a strengthening underlying network.

Source: Santiment

Growing Large Wallet Holdings

The substantial increase in wallets holding over 1 million DOGE signifies a growing belief in Dogecoin's long-term potential. This accumulation often precedes price rallies, historically correlating with positive price movements. Furthermore, large-scale accumulation typically reduces selling pressure, as these investors tend to hold their assets for extended periods, potentially mitigating sharp price drops. Continued growth in this metric could signal price stabilization or even a rebound in the coming weeks.

Rising Active Addresses Indicate Strong Network Engagement

The daily active Dogecoin address count exceeding 150,000 represents the highest network activity since mid-November. This signifies increased user engagement and transaction volume, often correlating with price volatility and potential market shifts. High network participation reflects sustained adoption and indicates continued interest from both retail and institutional investors, potentially bolstering Dogecoin's market resilience.

Price Fluctuations and Market Sentiment

Dogecoin's price has fluctuated significantly over the past six months, declining after reaching a high in late November 2024, despite intermittent rallies. However, the substantial accumulation in large wallets and the rise in active addresses could signal a potential recovery phase. Recent price stability might indicate a period of consolidation. Sustained high network participation could reignite bullish momentum, although broader market conditions will continue to play a significant role.