Dogecoin Whale Activity Plunges as Market Cap Falls 49%

Dogecoin Whale Transactions Plummet, Signaling Lower Large-Holder Activity

Dogecoin's whale transactions have experienced a significant decline, dropping to less than a third of their November levels. This reduction in large-holder activity aligns with the cryptocurrency's ongoing price decline.

Significant Decline in Whale Transactions

According to Santiment, weekly Dogecoin transactions worth $100,000 or more have decreased from 20,200 to 6,200. Similarly, transactions exceeding $1 million have fallen from 3,490 to 850. This indicates reduced movement from major holders, leading to a quieter market.

Impact on Dogecoin's Price

Dogecoin has maintained a downward trend despite a brief recovery. The cryptocurrency has declined in value for four consecutive days and has experienced low market volatility. During Saturday's trading, Dogecoin's price ranged between $0.244 and $0.25, reflecting investor uncertainty.

Dogecoin's moving averages continue to range between its 50-day and 200-day periods. A decisive break in either direction will determine the next phase of its price movement. Currently, the daily Relative Strength Index (RSI) is flattening near the 30 level, suggesting potential price consolidation in the short term.

Potential Accumulation Signal from Whales

Despite the current lull, Santiment suggests monitoring whale activity for signs of accumulation. Historically, an increase in large transactions has signaled renewed interest from significant holders, potentially leading to a price rebound. If whale activity picks up, it could indicate fresh buying momentum for Dogecoin in the coming weeks.

Upcoming Developments in the Dogecoin Ecosystem

The Dogecoin community anticipates major announcements from Timothy Stebbing, a director at the Dogecoin Foundation. Any significant developments could influence investor sentiment and potentially impact Dogecoin's price trajectory. Traders are closely watching for these updates to gain further clarity on the meme coin's direction.