Dogecoin Whales Go Silent, What This Means for DOGE’s Next Move

Cover Image: U.Today

In a tweet, on-chain analytics platform Santiment observed a significant decline in Dogecoin's whale activity:

Dogecoin's whale impact has dwindled, with large holders remaining dormant in recent weeks. This slowdown coincides with a 49% decrease in Dogecoin's market capitalization since its peak on December 7th.

According to Santiment:

Large Dogecoin transactions, defined as those exceeding $100,000, have plummeted to less than a third of their early November levels. Weekly $100,000 DOGE whale transactions have decreased from 20,200 to 6,200, while $1 million weekly DOGE whale transactions have fallen from 3,490 to 850.

Santiment encourages monitoring whale activity resurgence:

This could indicate that large holders are accumulating Dogecoin, which may be a positive sign. For now, DOGE is in a holding pattern, with whale inactivity suggesting possible consolidation.

Key Market Indicators:

Dogecoin has experienced consecutive declines following a Monday rebound from $0.201, marking a four-day downward trend. It has traded largely within a $0.244-$0.25 range on Saturday.

Technical Analysis:

Dogecoin is fluctuating between its 50-day and 200-day moving averages at $0.332 and $0.229, respectively. A break above or below these levels may indicate Dogecoin's future direction. The daily RSI remains near 30, suggesting potential short-term price consolidation.

Possible Price Movements:

A relief rally could encounter selling pressure at $0.30 and the 50-day SMA at $0.33. A further decline may test Dogecoin's $0.20 support.

Expectant Developments:

The Dogecoin ecosystem anticipates major announcements in the coming weeks, as hinted by Dogecoin Foundation director Timothy Stebbing in a recent tweet.