Once the talk of the town during the memecoin frenzy, Dogecoin is now witnessing a significant decrease in transactions by major holders and overall market participation. The volume of large transactions has notably decreased, with retail involvement also taking a hit.
As the price of DOGE struggles to stabilize, many are pondering whether this slowdown is temporary or a signal of diminishing excitement.
Dwindling Major Transactions in DOGE
The activity of major Dogecoin holders has experienced a sharp drop over recent weeks, aligning with a significant decline in price and general market sentiment.
There has been a considerable decrease in transactions exceeding $100k, plummeting from 20.2k weekly transactions to a mere 6.2k. Similarly, transactions surpassing $1 million have fallen from 3,490 to 850 during the same period. This pronounced reduction indicates that major holders are either leaving the market or opting to observe from the sidelines.
Is DOGE’s Price Momentum Fading?
At the present moment, DOGE is being traded at $0.24765, showing a notable decline from its peak in December. The 50-day moving average is at $0.33226, serving as a resistance point, while the price lingers below the Fib 0.236 retracement level of $0.25608 – indicating a persistent bearish trend.
An analysis of the Bollinger Bands suggests that DOGE has been consolidating close to its lower range, pointing towards limited volatility. If the support around $0.20 fails to hold, the next significant support level would be around $0.20101, as per the Fibonacci retracement data.
Reduction in Active Addresses and Network Involvement
The number of Daily Active Addresses in Dogecoin has also plunged to 37.6k, a stark difference from the peak of 1.68 million observed during the November surge. This sharp decline indicates a diminishing interest among retail investors, fueling concerns about the waning hype surrounding DOGE.
A similar pattern can be observed in the MVRV Ratio (30d), which has dropped to -23% – suggesting that a majority of holders are currently facing losses, potentially dampening further trading activities.
Implications for the Future of DOGE
Although the whale transactions and overall engagement metrics of Dogecoin have declined, historical data shows that the memecoin has gone through periods of stagnation followed by sudden spikes. However, the current signals indicate a lack of strong accumulation, hinting that a sustained surge is improbable unless major holders rejoin the market.
If the daily active addresses in DOGE and major transactions by whales continue to remain low, the coin may struggle to reclaim its former momentum.