Dogecoin Whales Accumulate Over 1B DOGE, Fueling Speculation of a Reversal

Despite the recent Dogecoin price slip, on-chain data have revealed an interesting trend: DOGE whales are actively accumulating the coin. As the asset records southbound movements, these large wallets have seized the opportunity to buy the dip. Could they be positioning for a possible market reversal?

Dogecoin Whales Accumulate Over 1B DOGE Amid Price Dip

DOGE is currently exchanging hands at $0.20 after dropping over 7% in the past week. However, crypto commentator Ali Martinez noted that despite this dip, Dogecoin whales purchased over 1 billion DOGE on August 6.

For context, the cohort under the spotlight is large wallets holding at least 1 billion DOGE, which is approximately $200 million at current prices. Given their massive asset stash, whale traders are often closely watched by market participants, as they are believed to wield a considerable market influence.

Alongside his comments, Ali posted a chart showing the latest supply distribution of DOGE whales. The “Supply Distribution” is an indicator that shows the total amount of assets held and distributed among its holders.

Looking at Ali’s chart, the following trends have been observed:

• Large Dogecoin holders (1 billion+ DOGE) started buying more in late June and early July.
• As whale holdings increased, the price of DOGE also climbed sharply through mid to late July.
• Around July 29, both whale holdings and price dropped, suggesting some whales shed off.
• Even though the DOGE price remained down, whale holdings rose again in the past week.

Interestingly, these large wallets seem to have stepped up buying pressure in the past day, with on-chain accumulation spiking. Experts believe that the timing of this purchase could be strategic—a possible move by these large investors to accumulate the coin at cheaper prices. 

Still, it remains to be seen whether this bold move will turn into a winning trade for the whales. Besides, analysts warn that whale movements are not clear predictors of market trajectories.

DOGE Holds Steady Amid Mixed Signals and Whale Activity

Even with the week-to-date dip, the Dogecoin price still trades within the green zone on its one-month chart. Price action indicators and technical trends further offer insight into DOGE’s market movement.

Here are the key on-chain trends to note regarding Dogecoin’s price movement:

• Dogecoin has outperformed 81% of the top 100 crypto assets over the past year.
• It recorded 16 green days in the last 30 days, showing short-term strength.
• However, the coin is still trading below its 200-day simple moving average.
• Plus, DOGE is down 72% from its all-time high of $0.73. 

Technicals also highlight a shift in market sentiment. As spotted by crypto expert Tardigrade, a broadening wedge pattern has appeared on the 7-day chart. According to the analyst, such a setup is usually linked with price fluctuations between $0.22 and $0.48.

Meanwhile, the Relative Strength Index is creeping into the oversold zone, currently at 44.7. At the same time, the stable Chaikin Money Flow at -0.01 points to reduced selling pressure, although the market direction remains unclear.

Prominent market analyst AlienOvichO highlighted that Dogecoin has found support at $0.19 after completing a triple swing down from its recent peak. He added that the setup is showing signs of a potential bullish breakout, even though no confirmed bottom is in place.

Although the recent activity by whales has caught the broader market’s attention, the mixed Dogecoin price actions indicate uncertainty—particularly in the short term. Against this backdrop, market participants are actively watching for further developments.