Dogecoin (DOGE) has seen a significant increase in net flow into large holders’ wallets, signaling strong bullish activity in the cryptocurrency market.
DOGE’s net flow increased by 118%, from 67.85 million to 148.36 million tokens, equivalent to $14.84 million, indicating growing investor interest and strategic market positioning. The net flow metric is crucial in understanding market sentiment, particularly among whales who hold more than 0.1% of the total DOGE supply.
A spike in net flow typically indicates that large holders are accumulating more tokens, which often precedes a price increase. However, the real driver behind this bullish momentum seems to be a decrease in outflows rather than a substantial increase in inflows.
Outflows from whale wallets dropped by 45.9%, down to 111.41 million tokens, while inflows only saw a minor decrease of 5.13%, remaining at 259.77 million DOGE tokens.
This reduction in selling pressure could be a sign that whales are holding onto their DOGE, anticipating a more significant price movement soon.
Recently, Elon Musk and Tesla have avoided a class-action lawsuit filed in 2022 by investors accusing them of manipulating the Dogecoin market through public statements and Twitter posts.
The lawsuit alleged that Musk used his social media influence to artificially inflate the value of Dogecoin, causing significant losses to investors who acted on his comments.
Judge Alvin K. Hellerstein dismissed the lawsuit with prejudice, stating that Musk’s statements, such as referring to Dogecoin as “the people’s cryptocurrency” and stating it would be the future currency of the Earth, were “aspirational and exaggerated,” which are not concrete facts that can be proven false.
The investors also accused Musk and Tesla of carrying out a “pump and dump” scheme, where they inflated the price of Dogecoin and sold their assets at a profit before the price dropped. However, Judge Hellerstein argued that the allegations were confusing and lacked a solid basis to support such claims.
