Dogecoin, the popular meme-based cryptocurrency, has once again captured public attention in recent days despite the bearish trend gripping the broader crypto market. DOGE experienced a brief surge following a cryptic post on the social media platform X (formerly Twitter) by billionaire entrepreneur Elon Musk last week, which appeared to allude to the token, albeit in an indirect way.

Despite this temporary rally, the underlying market sentiment toward Dogecoin remains largely unchanged. The reaction to Musk’s post has not been enough to inspire lasting optimism, particularly among major investors. In fact, large holders have been offloading their positions at a noticeable rate alongside an increase of DOGE inflows to cryptocurrency exchanges.

Dogecoin Whale Holdings

IntoTheBlock’s “Large Holder Netflow” metric shows an interesting trend among addresses possessing at least 0.1% of the total circulating supply of DOGE. The netflow is essentially the difference between the amount of tokens entering into whale wallets and those leaving whale wallets. A positive netflow indicates a period of accumulation by whales, while a negative netflow points to significant outflows from their wallets.

According to this metric, the total large holder netflow has reduced by 57.29% in the past seven days. Furthermore, this metric shows 169.46% and 166.98% reductions in larger 30-day and 90-day timeframes. These sharp declines suggest that many major holders have substantially reduced their DOGE positions, likely in response to the cryptocurrency’s underwhelming price performance over the past three months.

Further supporting this trend is the “crypto exchange netflow” metric, which tracks the movement of DOGE tokens in and out of exchange wallets. Typically, periods of accumulation are indicated by a negative exchange netflow, as more tokens leave exchanges for private wallets. Conversely, a positive exchange netflow often signals increasing sell pressure as more tokens flow into exchanges for potential liquidation.

Going by this explanation, we can better understand the current sentiment surrounding Dogecoin. In the last 24 hours alone, the balance of DOGE on aggregate cryptocurrency exchanges has risen by 86.33 million DOGE tokens. Similarly, exchange balances have increased by 93.2 million DOGE tokens in the last 30 days and 96.9 million DOGE over the past 90 days.

Is It Time To Panic?

Before jumping to conclusions, it is important to note that whale activity, although very important, doesn’t always predict long-term trends. DOGE is still the largest meme coin by market cap, and its fundamentals point to a positive reign in the long term. In terms of price action, DOGE has trended mostly downwards, which is in line with the rest of the crypto industry.

Despite this, it has managed to hold up better than many other large market-cap cryptocurrencies. DOGE continues to trade above $0.1, which has now become a strong price support level.

At the time of writing, DOGE is trading at $0.1037 and is up by 6.55% in the past 24 hours.