Dogecoin has surged by more than 12% during the historically bearish month of September but has recently struggled to maintain its form in October. Over the past few days, the price of DOGE has been under significant bearish pressure, mirroring the sluggish climate of the broader crypto market over the last week.
However, new on-chain data suggests that Dogecoin’s downturn might not last long. Large investors, including institutional players, have become notably active in the market, which could have a significant impact on the meme coin’s price.
Ali Martinez, a prominent crypto analyst, recently shared an intriguing on-chain insight regarding the activities of whales and other substantial investors. The key metric here is the IntoTheBlock number of large transactions, which tracks token transfers worth more than $100,000. This data point primarily involves whales and institutional players, entities that hold substantial amounts of a particular cryptocurrency and consequently wield significant influence over market dynamics.
According to Martinez, the number of large Dogecoin transactions has been steadily increasing. A surge in such transactions typically indicates that these major players are either accumulating tokens in anticipation of a price upswing or distributing their holdings. It is important to note that while the IntoTheBlock metric highlights large transactions, it does not provide clarity on the direction of these transfers.
Recent data revealed that Dogecoin whales, those holding at least $10 million worth of the cryptocurrency, have purchased over 1 billion DOGE, amounting to more than $108 million, in a single day. This significant accumulation by large holders has left other investors questioning what these major players might know.
The heightened activity of institutional investors and whales could foster a bullish outlook for Dogecoin, bolstering confidence in the meme coin’s long-term potential. Such activity could also increase market volatility, setting the stage for notable upward price movements.
As of now, Dogecoin is priced at approximately $0.1088, reflecting a slight 0.6% decline over the past 24 hours. According to CoinGecko data, DOGE has fallen by more than 16% over the past week. While the meme coin’s recovery appears to be slowing down, investors should keep an eye on bullish on-chain movements. Additionally, October has historically been a positive month for Dogecoin, potentially signaling better days ahead.