- The Dogecoin capitalization discrepancy gave some insights into market sentiment.
- Two whale cohorts exhibited some accumulation, while other groups remained hesitant to buy.
Dogecoin [DOGE] saw a 33.5% decrease in trading volume in the past 24 hours, at the time of writing. This could be a weekend effect, when trading volume tends to fall. The price was down 3% in a day as Bitcoin [BTC] saw a rejection from the $97.9k level and was down 2.4% in under two days.
In a recent report, it was highlighted that the largest memecoin saw whale accumulation. A total of 100 million DOGE tokens worth $17.5 million were added to whale holdings.
This was backed up by increased Dogecoin exchange outflow, a sign of large withdrawals from exchanges. This increased the chances of a rally, but other metrics were less bullish.
Dogecoin holders are not willing to sell
Source: Santiment
Since the 6th of April, the market capitalization has grown from $21 billion to $26.4 billion. Yet, the realized cap shrank from $21.5 billion to $21.3 billion.
The Realized Cap metric represents the value of all coins in circulation, valued at the last price they were moved at on-chain.
Hence, this discrepancy between Market Cap and Realized Cap showed some of the past month’s gains could be driven by speculative activity.
Recent buyers might be realizing profits, but a slight encouragement was that long-term holders were not selling. High LTH selling would see a deeper decrease in the realized cap.
Source: Santiment
Examining the supply distribution of DOGE, AMBCrypto observed that the 100-1 million DOGE holding wallets saw a surge in selling on the 8th of April. Since then, these cohorts of wallets have not displayed accumulation.
The 10 million-100 million holder groups saw steady distribution over the past month. The 1 million- 10 million and 100 million- 1 billion Dogecoin holders saw some buying activity after the 8th of April.
Meanwhile, the Daily Active Addresses were merely 3.4% of what they had been during the November peak.
The market sentiment was subdued, but unless increased activity and buying pressure become apparent, it was increasingly likely that DOGE was not ready for a major long-term rally.