After a prolonged period of quiet, altcoin whales have made significant moves, driving activity in two major cryptocurrencies. Notably, the timing of the activity in Dogecoin (DOGE) has been interpreted as a potential sign of a bullish trend. But why are whales re-entering the market now? Here’s what the data reveals.
Ripple Whales Accumulate Over 100 Million XRP During Decline
During the recent market downturn, Ripple whales purchased more than 100 million XRP, creating a wave of optimism for the token’s future. On-chain data reveals that these acquisitions occurred as the market experienced a sell-off, catching the attention of global investors.
According to crypto analyst Ali Martinez, as of December 11, Ripple whales accumulated over 100 million XRP during the sell-off. This remarkable buy-in suggests a bullish trajectory for XRP, drawing increased market interest.
Whales’ behavior often reflects their strategy to seize buying opportunities during market dips. The recent crash, which liquidated over $1.76 billion worth of crypto, aligns with these strategic whale movements. However, a separate on-chain metric has introduced mixed market sentiment regarding XRP’s future.
In the past 30 days, whales moved 2.66 billion XRP to Binance, increasing the exchange supply. This shift has raised uncertainty, highlighting a delicate balance between accumulation and potential sell-offs.
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Dogecoin Whales Return as Dormant Coins Shift
Dogecoin (DOGE) has also seen renewed activity, driven by dormant coins changing hands. This uptick comes after DOGE’s price fell 19% from its three-year high of $0.48 on December 6.
A key metric, DOGE’s Mean Dollar Invested Age (MDIA), has entered a downtrend in recent weeks. MDIA measures the average age of all coins on the network relative to their purchase price and holding period. A falling MDIA indicates coins re-entering circulation, a sign of increased network activity typically associated with bullish momentum.
Santiment data shows DOGE’s MDIA dropping to 370 days, revealing that coins have “youngened” by 31% in the past eight weeks. Coupled with a positive funding rate of 0.003%, DOGE’s outlook appears optimistic. The positive funding rate suggests bullish market sentiment and upward price pressure.
On the daily chart, DOGE maintains dynamic support at $0.34, as indicated by the SuperTrend indicator, which measures price trend direction and strength. Currently green, the SuperTrend suggests a bullish trend is in play. Some analysts believe this market environment could be a precursor to a broader bull rally.
Conclusion
The movements by whales in XRP and DOGE highlight the complex interplay of accumulation, market dynamics, and on-chain metrics. As Ripple whales stockpile XRP and Dogecoin’s metrics point to increased activity, the broader crypto market remains on edge for what’s next. For expert insights and up-to-date analysis, stay tuned to The Bit Journal.
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