Dogecoin sees monthly gains amid whale profit-taking

Dogecoin (DOGE) has experienced significant market activity, recording a 21.4% gain in August, marking its best monthly performance of the year. Despite this recent breakout, the token remains down approximately 28% year-to-date and has yet to recover its 2025 highs.

Market indicators present a mixed outlook. On-chain data from Santiment suggests a cautious trend as large-scale holders, or whales, have reduced their exposure by approximately 260 million tokens since late August. This movement indicates potential profit-taking among top-tier and mid-sized holders, though smaller whales have been accumulating supply.

Conversely, derivatives data shows signs of underlying strength. The long-to-short ratio remains above one, and funding rates have turned positive, suggesting bullish sentiment among traders. Additionally, Dogecoin ETFs saw inflows of $146,020 last week, indicating a recent uptick in institutional demand.