The Number of Dogecoin Sharks and Whales Rise: Is the Price About to Reverse?

According to data from the blockchain analytics company Santiment, Dogecoin has recently seen an increase in several key metrics. The first relevant metric here is the "Supply Distribution" of DOGE wallets holding more than 1 million tokens. The supply distribution informs us, among other things, the number of addresses belonging to a specific coin range. For example, the indicator for the coin group from 1 to 10 measures the number of holders who own at least 1 and at most 10 DOGE in their balance. The DOGE group has over 1 million, which is the concentration range here, including two main groups of investors: sharks and whales. According to the current exchange rate, the threshold for the conversion range is about $166,600. This is clearly quite a large amount of money, which is why entities belonging to sharks and whales are considered important in the network. The following is a chart showing the distribution trend of Dogecoin supply for amounts over 1 million dong in the past few months:

As shown in the chart above, the distribution of Dogecoin supply among sharks and whales has decreased significantly as the price decline of the memecoin began in January. However, since the beginning of February, the indicator has reversed direction and is on an upward trajectory. Interestingly, this increase in wallets occurs despite the fact that the decline of the asset continues during this period. This trend implies that although large investors panicked and sold off when the first price drop began, they later shifted their focus to accumulation as prices fell. In total, shark and whale wallets have increased by approximately 1.24% since the beginning of February and are now not far from the peak witnessed in January. The increase in large wallets is not the only positive sign that Dogecoin has seen; there is also a price increase in another indicator attached to the chart. The index being referred to is Active Addresses, which tracks the total number of DOGE addresses participating in various types of transaction activities on the blockchain daily. From the chart, it can be seen that the active address of Dogecoin has increased to the highest level in the last 4 months, indicating a large number of users have made transfers on the network. While the increase of shark and whale wallets has been happening for some time, the signal in the Active Address is a newer signal. It seems that the current low price has finally attracted the attention of the public, who are now actively making their moves.