Dogecoin whales add 2 billion tokens, but DOGE continues to decline – why?

Dogecoin has experienced a significant decline over the past two weeks.

• DOGE has fallen into a downward trend due to a slight decrease.

Despite the weak price performance, Dogecoin [DOGE], the largest memecoin by market capitalization, has experienced notable accumulation in recent weeks.

However, the increase in accumulation has yet to translate into any meaningful price recovery, as DOGE continues to struggle after its recent decline.

Large Dogecoin holders are playing the long game.

According to CoinMarketCap, Dogecoin has lost over 8% of its value in the past seven days, reducing its market capitalization to around $15.8 billion. This decline has diminished some of its market value, but large holders remain undeterred.

Source: IntoTheBlock

Data from IntoTheBlock showed that large holders accumulated over 2 billion DOGE tokens last week, marking the largest accumulation event since January.

Based on current prices, this accumulation is worth around $200 million. This indicates that significant Dogecoin investors are adopting a long-term approach and betting on the eventual recovery of the memecoin.

Recent upward trends have failed to bolster Dogecoin.

Despite the accumulation, Dogecoin’s price continues to decline. An analysis of its price chart reveals that Dogecoin fell over 8% on the last day of the previous month, followed by a 6% decrease at the beginning of this month.

The downward trend continued with an additional 2% drop the next day.

Source: TradingView

Although Dogecoin recently experienced some consecutive upward trends, they were not enough to recover the price levels it had lost. At the end of the last trading session, Dogecoin fell by 2.8%, trading at around $0.108. At the time of writing, it is slightly lower at $0.107, but it is supported by the 50-day moving average and has been holding strong at around $0.105.

More than 50% of DOGE holders remain profitable.

Despite the ongoing price decline, many Dogecoin holders are still in profit. Analysis of the In/Out of the Money chart from IntoTheBlock shows that over 69% of holders, or approximately 244,000 addresses, are still “in the money” at the current price.

Further analysis of the global In/Out of the Money chart indicates that over 72% of Dogecoin holders are currently profitable, reflecting strong investor sentiment despite recent market challenges.

While Dogecoin has seen record accumulation from large holders, the memecoin’s price continues to face challenges.

However, with more than 50% of its holders still in profit and strong support around $0.105, the long-term outlook for Dogecoin may remain optimistic.