Dogecoin whales disappear amid declining market activity
Dogecoin whales disappear
Dogecoin, once a star of the memecoin frenzy, is now witnessing a significant drop in whale transactions and overall market activity. Large-scale transfers have slowed dramatically, hinting at a potential shift in sentiment. As DOGE struggles to stay above key support levels, questions arise—has the hype finally worn off?
Shrinking whale activity raises concerns
Recent data suggests a sharp decline in large DOGE transactions. Transfers exceeding $100K have plummeted from 20,200 per week to just 6,200, while those over $1 million have dropped from 3,490 to 850 in the same period. This substantial reduction suggests that major holders are either cashing out or staying on the sidelines, contributing to the token’s weakened momentum.
Price struggles amid bearish sentiment
As of now, Dogecoin is priced at $0.24765, significantly lower than its December peaks. The 50-day moving average stands at $0.33226, acting as a key resistance level, while the price remains under the Fibonacci 0.236 retracement level at $0.25608, reinforcing bearish sentiment.If the critical $0.20 support level is breached, the next major threshold to watch would be $0.20101.
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Falling engagement and market interest
Daily Active Addresses on the Dogecoin network have plummeted to 37,600, a sharp drop from the 1.68 million peak seen in November. This significant decline points to reduced retail interest and a broader lack of enthusiasm.
Meanwhile, the 30-day MVRV Ratio (Market Value to Realized Value) has sunk to -23%, indicating that a large portion of holders are at a loss. With fewer traders profiting, selling pressure may continue to mount, further weighing down the price.
Although Dogecoin has experienced dormant phases followed by explosive rallies in the past, current trends indicate a lack of strong accumulation. Unless there is a revival in whale activity or renewed retail enthusiasm, a sustained uptrend appears unlikely in the near future.
Dogecoin seemingly started as a joke, but it's now growing steadily. Crypto analysts have predicted a reasonable price for it in the next ten years.
