- The amount of large transactions involving Dogecoin whales has decreased to less than 30% of what it was in early November, indicating a decrease in the participation of major holders.
- The price of the cryptocurrency is still dropping, fluctuating between important moving averages, and there is a possibility of either stabilization or more decline.
- Experts suggest keeping an eye on large whale transactions to look for indications of accumulation, as this could indicate a potential increase in price in the weeks ahead.
A notable decrease in trading activity has been observed among Dogecoin’s major stakeholders, with a substantial decline in large transactions over the past few weeks. According to data from Santiment, an on-chain analytics firm, the number of transactions exceeding100,000 has plummeted to a fraction of its early November peak, now accounting for less than one-third of its previous level. This slowdown in whale activity has coincided with a significant contraction in Dogecoin’s market by nearly half since reaching its peak on December 7.
A notable downturn in high-value trades has been observed in the Dogecoin market, according to Santiment’s data. The number of weekly transactions exceeding $100,000 has plummeted from 20,200 to 6,200, while those surpassing $1 million have fallen sharply from 3,490 to 850. This dramatic decrease implies that large investors have either been selling off their holdings or adopting a more cautious approach, resulting in a relatively subdued market.
Influence on Dogecoin’s Price Fluctuation
Dogecoin’s price continued to decline after a short-lived bounce back from $0.201, with losses extending for multiple days in a row. The cryptocurrency has seen a decrease in value over the past four days and has displayed minimal market activity in recent trading sessions.
On Saturday, the price of Dogecoin fluctuated between $0.244 and $0.25, reflecting cautiousness in the market among investors. The value of Dogecoin dropped by 2.95% within a day, settling at $0.247, following a continuous 24% decrease over the week.
Dogecoin is currently trading between $0.332 and $0.229, with its moving averages fluctuating over the 50-day and 200-day periods. The direction of a significant break could shape its future price movement. Additionally, the daily Relative Strength Index (RSI) has stabilized around 30, suggesting a potential period of price consolidation in the near future.
In the event of a relief rally, it is anticipated that there will be resistance around the $0.30 mark, and there could be more significant selling pressure at the 50-day moving average of $0.33. Conversely, there is a chance that the $0.20 support level may be tested if the market moves lower.
Large Investors Showing Buying Interest.
Santiment recommends that traders keep an eye on whale activity to look for signs of accumulation, even though there is currently a quiet period. In the past, an increase in significant transactions has shown renewed major holders, which could lead to a price bounce back. If there is an uptick in whale activity, it may indicate a new wave of buying interest in Dogecoin in the upcoming weeks.
Anticipation is growing among the Dogecoin community regarding upcoming developments in the Dogecoin ecosystem. Timothy Stebbing, a Dogecoin Foundation director, has alluded to imminent major announcements. The community eagerly anticipates how any significant changes could affect investor sentiment and potentially alter Dogecoin’s price direction. Traders are keenly monitoring for these updates as they seek more insight into the future path of this meme coin.
