Dogecoin Price Drops 18% But Whale Activity Hints at Recovery

Dogecoin Price Drop and Whale Activity

Dogecoin experienced a price decline of over 18% this week, falling from $0.1314 to a low of $0.1045. However, data from Santiment indicates strong whale activity, suggesting potential for bullish momentum.

Dogecoin's Price Drop

Dogecoin (DOGE) faced a significant price drop amidst a broader market downturn. It fell from a peak of $0.1314 on Sunday to as low as $0.1045 on Wednesday. Despite the decline, DOGE showed signs of recovery, trading at $0.1085 at the time of writing.

Whale Activity and Impact

Santiment's data highlights increased activity among major Dogecoin holders, known as "whales." While whales took profits near the recent price peak, they remain active within the ecosystem.

Additionally, Dogecoin's network activity has reached a 7-month high in active addresses, indicating strong retail investor participation. Whale transactions have spiked to a 4-month high during the price dip.

Recent Activity Highlights

• Over 63,000 DOGE addresses moved their holdings in the past three days, the highest level since April.
• 1,203 whale transactions exceeding $100K each preceded the recent price peak, the highest whale participation since May.

Technical Analysis

The 4-hour chart suggests DOGE is correcting after reaching $0.13, but remains above previous support. However, moving averages indicate caution. If DOGE falls below $0.10, a potential trend reversal may occur.

Closing Thoughts

Despite the price drop, Dogecoin's strong whale activity and recent bounce suggest potential for bullish momentum. If it can recover back to previous resistance levels of $0.13 or even $0.15, it could signal a reversal of the downtrend.