Whales accumulate billions of DOGE as short-term holders sell at a loss.
Dogecoin adoption surges past 8 million holders, showing strong growth in Cryptocurrency.
ETF filings and Blockchain activity boost DOGE’s outlook, signaling rising institutional interest.
In recent weeks, Dogecoin has seen a big shift in who holds the cryptocurrency. Many short-term traders, who bought Dogecoin for quick profits, have been selling their coins at a loss. On the other hand, large investors, often called whales, have been buying up these coins in massive amounts.
Data shows that whales have accumulated between 680 million and 2 billion DOGE during August. Most of these purchases happened around the important $0.21 level, which is considered a strong support area because it lines up with the 50-day and 200-day moving averages.
This means that while smaller traders are losing confidence, the bigger players are stepping in and buying when prices drop. Around 271 million DOGE were sold at a loss in mid-August, showing clear signs of panic among short-term holders. Whales saw this as an opportunity and took advantage by adding large amounts of DOGE to their portfolios.
The market showed just how powerful whale buying can be when Dogecoin price suddenly bounced back from a fall. On August 21, DOGE dropped to lows near $0.21 but then staged a strong V-shaped recovery. It closed the day at around $0.22 after a huge buying volume of 9.29 million DOGE appeared in the final hour of trading. This kind of volume is often linked to institutional investors or very large traders rather than retail buyers.
At the same time, activity on the Dogecoin network began to rise. The number of new addresses on the blockchain increased by more than 100 percent, and active addresses jumped by 111 percent. This increase shows that more people were using the network, likely drawn in by the price volatility and the renewed interest from large investors.
Several signals suggest that institutional investors are starting to take Dogecoin more seriously. Grayscale, one of the largest asset managers in the crypto world, recently filed for a spot Dogecoin exchange-traded fund (ETF). This step would open the door for more traditional investors to put money into Dogecoin through a regulated investment vehicle.
At the same time, estimates show that institutions have already purchased over $100 million worth of Dogecoin since July. Technical indicators have also supported the bullish case. In mid-August, Dogecoin’s chart confirmed a “golden cross,” a situation where the 50-day moving average crosses above the 200-day moving average, which is often seen as a sign of strong upward momentum. Some analysts even predict that, if conditions stay positive and the ETF is approved, Dogecoin could aim for long-term price targets between $0.70 and $1.30.
Another important trend is the steady growth in the number of Dogecoin holders. By August, the number of addresses holding at least some DOGE had risen to more than 8 million. This is a big jump from about 6.9 million earlier in the year. In less than eight months, more than a million new addresses were added.
This kind of growth shows that Dogecoin adoption is still rising, and its community continues to expand. It now has one of the largest holder bases in the crypto market, behind only Bitcoin and Ethereum. This widespread participation strengthens the coin’s long-term appeal, even during times of price volatility.
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The actions of whales are not only influencing price levels but also changing the supply dynamics of Dogecoin price prediction. Many of these large purchases are being moved into cold storage wallets, meaning the coins are no longer available for quick selling on exchanges. This reduces the circulating supply and increases the effect of new whale purchases.
One example of this came when whales bought about 2 billion DOGE in a single week, worth roughly $448 million. Another major move was Bit Origin’s $500 million commitment to Dogecoin when the price was around $0.24. These big acquisitions reduce liquidity on exchanges and make each new round of buying even more impactful on price direction.
Technical indicators suggest that Dogecoin is at a crucial stage. The $0.21 level has shown itself to be a strong support point, where whales have stepped in heavily to buy. If this level holds, it could provide a foundation for further gains.
On the upside, resistance is being seen around the $0.22 to $0.23 range. If the price breaks above this area, it could open the way for Dogecoin to move toward $0.24 to $0.30 or higher. The golden cross adds more strength to this outlook, but investors are also aware of risks. Concerns such as possible vulnerabilities from the Qubic network’s threats highlight that Dogecoin is not without challenges.
The current market environment for Dogecoin highlights a classic case of contrarian trading. While retail traders have been selling at losses out of fear, whales and institutional investors have been steadily buying. This transfer of coins from weak hands to strong hands has often been the start of major upward moves in the past.
The broader crypto sentiment index, known as the Fear and Greed Index, is currently around 49, which is neutral. This reflects uncertainty among smaller investors. But the large-scale buying from whales shows growing confidence from those with deeper pockets. Such a mix of fear and quiet accumulation often sets the stage for price growth once the market stabilizes.
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Dogecoin is once again showing the unique patterns that have made it one of the most talked-about cryptocurrencies. Short-term holders have been shaken out, selling large amounts at a loss, while whales have been accumulating billions of DOGE at key levels. The bounce from $0.21, rising address activity, and strong institutional signals such as ETF filings all point toward renewed strength in the market.
With over 8 million addresses now holding Dogecoin and whales tightening the circulating supply, the foundation for a stronger price structure is being laid. If support at $0.21 continues to hold and resistance above $0.22 is broken, Dogecoin could be preparing for another rally.
The current situation highlights a major shift in market psychology. While smaller players panic, bigger investors are quietly building positions. This dynamic could very well shape Dogecoin’s next big move in the coming months.
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