According to U.Today, Dogecoin (DOGE), a widely recognized meme cryptocurrency, has experienced concerning on-chain developments in the last 24 hours. Data from IntoTheBlock reveals a significant drop of nearly 86% in the Large Holders Inflow metric, which monitors the transfer of funds into addresses owned by major investors, also known as whales. The Large Holders Inflow plummeted from 428.72 million DOGE to 62.63 million DOGE, which is roughly equivalent to $9.45 million. This substantial decrease suggests a significant reduction in buying activity among these key stakeholders.
Typically, a drop in this metric indicates a decrease in purchasing activity, as many large holders usually buy assets on centralized exchanges before moving them to cold storage. Furthermore, the Large Holders Netflow, which offers insights into the position changes of whales and investors holding over 0.1% of the supply, has also seen a significant decline. Last week, it was in positive territory at 411.69 million DOGE but has since dropped to 31.71 million DOGE. This shift in netflow suggests a change in sentiment among large players, potentially indicating reduced positions or selling.
Meanwhile, Dogecoin's price has shown mixed trends over the past day, with a loss of 2.57% recorded yesterday and an additional 1.46% decline today. Currently, the cryptocurrency is trading at $0.152 per DOGE. The implications of the decrease in whale activity on the price of Dogecoin are noteworthy. Historically, the actions of large holders have significantly influenced market movements. Therefore, the sudden decline in whale activity could lead to increased market volatility or signal changes in sentiment among institutional investors.