Dogecoin Investors Buck the Trend
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.
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.
Hot Take: Dogecoin Investors Show Resilience During Market Turmoil
If there’s one thing that stands out amidst the crypto market turmoil, it’s the resilience of Dogecoin investors. Despite the challenging conditions, large Dogecoin holders have been strategically buying more coins instead of selling them. This unusual behavior indicates their optimism for future price rallies and suggests that they see potential value in accumulating more of this meme coin while prices are low.
On Tuesday alone, these large investors acquired over 1.32 billion DOGE, worth approximately $127 million at the time. This significant inflow contrasts with previous days’ modest buying trends and highlights their confidence in Dogecoin’s long-term prospects.
Although there has been some outflow from these large holders, it has been outweighed by the substantial inflow, resulting in a net flow of 967 million DOGE. This demonstrates their commitment to holding onto their coins rather than selling them during the market downturn.
Furthermore, the decline in Dogecoin’s open interest alongside its price is a cause for concern among investors. Open interest, which measures the number of open futures or options contracts, has dropped by 21.7% from its peak on December 10. This decline suggests that fewer traders are entering positions in Dogecoin at the moment, potentially contributing to the downward pressure on its price.
Overall, while the market faces uncertainty and bearish sentiment, Dogecoin investors remain steadfast and optimistic about the future of this meme coin.
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