Friday, 15 December 2023

Dogecoin Whales Quietly Buy $127 Million Worth Of DOGE Amid Market Turmoil

by Rose White

If there is one set of investors that have refused to give up their faith during the crypto market turmoil, it is Dogecoin investors. More specifically, the larger Dogecoin holders have been showing their hand lately, choosing to go in the opposite direction of the general market. They have bought up a massive amount of the meme coin as fear and panic in the market create a ripe environment to scoop up cheap coins.

Dogecoin Large Holders Up The Ante

In a rather interesting turn of events, large Dogecoin holders have taken to buying coins instead of selling them. This comes despite the fact that these large investors are seeing profit on their holdings, suggesting that they expect the price to continue to rally.

According to IntoTheBlock, these large investors picked up over 1.32 billion DOGE in a 24-hour period on Tuesday. The dollar value of this buy at the time was pegged at approximately $127 million. It was also a stark contrast to the muted buying trends of these whales in the prior days which came out to around 500 million DOGE.

Naturally, the large holder inflow is offset to some degree by the outflow. But given that the outflow volume was much lower than inflows, the net flows for these whales came out to 967 million DOGE, which is still a substantial figure for the meme coin.

Large transactions saw a decline by December 12 when the market began to turn. December 11 figures for large holders was $1.62 billion but by December 12, a 22% drop in one day. However, this is not at all bad as it could signal an unwillingness to move coins for sale on the part of these large holders.

Dogecoin Whales Quietly Buy 7 Million Worth Of DOGE Amid Market Turmoil

DOGE Open Interest Falls Amid Bearish Worries

The Dogecoin open interest has been on the decline alongside the price which could explain the fall in price. Usually, a rise in open interest translates to a rise in the price of the digital asset, and this decline could be a cause for concern for investors.

DOGE’s open interest had hit a one-year peak on December 10, reaching $603 million. However, by December 12, this figure had declined 21.7% to $472 million. Since the open interest measures the number of open Dogecoin futures or options contracts, it means fewer traders are opening positions in the meme coin right now. There has also been a flush out of long traders over the last few days and this has contributed to the decline in open interest.