Using onchain metrics, Santiment analysts analyzed recent developments and actions of Whales in the cryptocurrency meme.
Santiment analysts have suggested that Whale is aware of the recent rise of Dogecoin (DOGE). Exploring onchain metrics, they analyzed the movement of the coin’s exchange rate. As well as the actions of its owners.
On April 3, Elon Musk swapped the Twitter logo for the Dogecoin symbol. According to analysts, most of the cryptocurrency community already knows. That if Musk does something on social media, his goal is to have fun, get attention or make money. Perhaps in this case, all three goals were met, Santiment noted.
The day after Twitter’s logo change, the Dogecoin token rate soared more than 33%, temporarily outpacing the growth of other cryptocurrencies. This happened in two waves: the big price jump started and ended almost immediately after the news (from $0.077 to $0.100), followed by the second wave of growth (to $0.102).
Studying transaction data and market indicators, Santiment analysts noted many signals. Which indicated when the big players (who, according to the authors, probably knew about the planned “pumping” of DOGE) were exiting the asset. Or at least recorded large profits.
Santiment explained that when the number of active addresses. As well as the volume of trades and transactions, and transactions of “whales” (addresses with more than $100k) together increase sharply in the period. And when an asset experiences growth independent of other markets, it is possible to assert with confidence. That here almost always forms a local top and fixation of profit at this moment.
Four types of DOGE holders
Analysts have studied the behavior of coin owners, dividing them into four categories based on the number of Dogecoin tokens:
“Fishes” (0-10 DOGE);
“Dolphins” (10 to 10 thousand DOGE);
“Sharks” (10 thousand to 10 million DOGE);
“Whales” (10 million or more DOGE).
According to the study, “fishy” addresses aggressively bought the coin the moment the price peaked. This is typical and is one of the signs of a price peak. “Dolphins” and “sharks” showed no signs of participating in this rally.
Our experts note that “Whales” were buying small quantities of the token in anticipation of replacing the Twitter logo. And as soon as the Dogecoin price jumped, the owners of such wallets fixed their profits.
Santiment suggests that something might have been known to the big DOGE holders. This is just a guess – the identities of address holders are unknown.
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