- Dogecoin’s whale transactions have dropped to less than a third of early November levels, signaling reduced large-holder activity.
- The cryptocurrency’s price continues to decline, trading between key moving averages, with potential consolidation or further downside.
- Analysts recommend monitoring whale transactions for signs of accumulation, which could signal a price rebound in the coming weeks.
Dogecoin’s large holders have significantly reduced their activity, with transactions from whales falling sharply in recent weeks. On-chain analytics platform Santiment highlighted this decline, noting that transactions involving at least $100,000 have dropped to less than a third of their early November levels. The reduction in whale activity coincides with Dogecoin’s market capitalization shrinking by 49% since its December 7 high.
Significant Decline in Large TransactionsData from Santiment indicates that weekly Dogecoin transactions worth $100,000 or more have decreased from 20,200 to 6,200. Similarly, transactions exceeding $1 million have dropped from 3,490 to 850 over the same period. This substantial decline suggests that major holders have been offloading or holding back from making significant moves, leading to a quieter market.
Impact on Dogecoin’s Price Movement
Dogecoin maintained a downward trend after its brief recovery from $0.201 and the price extended its consecutive losses. The cryptocurrency has shown decreasing values for four straight days and has experienced low market movement throughout recent trading periods.
During Saturday trade Dogecoin prices stayed within the range of $0.244 to $0.25 indicating market wariness among investors. Dogecoin sustained a 2.95% reduction in its value during the 24 hours while reaching a $0.247 position through an ongoing 24% decline across the week.
Dogecoin exists between $0.332 and $0.229 as its moving averages continue to perform between their 50-day and 200-day periods. A decisive break in either direction may determine the next phase of its price movement.
Meanwhile, the daily Relative Strength Index (RSI) has flattened near the 30 level, signaling possible price consolidation in the short term.
If a relief rally occurs, resistance is expected near $0.30, with stronger selling pressure at the 50-day moving average of $0.33. On the downside, a retest of the $0.20 support level remains possible.
Potential Accumulation Signal from Whales
Despite the current lull, Santiment suggests that traders should monitor whale activity for signs of accumulation. Historically, a resurgence in large transactions has indicated renewed interest from significant holders, potentially triggering a price rebound. If whale activity picks up, it could signal fresh buying momentum for Dogecoin in the coming weeks.
Upcoming Developments in the Dogecoin Ecosystem Meanwhile, anticipation is building within the Dogecoin community. Timothy Stebbing, a director at the Dogecoin Foundation, recently hinted at major announcements expected soon. Any significant developments could influence investor sentiment and potentially impact Dogecoin’s price trajectory.
