Once a major player in the world of memecoins, Dogecoin is currently experiencing a significant decline in transactions by its largest holders and a general slowdown in market activity. Big transactions have noticeably decreased, and the participation of individual investors has also dwindled.
As the price of DOGE struggles to stabilize, many are wondering whether this decline is a temporary pause or an indication that the excitement surrounding the coin is diminishing altogether.
Reduction in Whale Transactions of DOGE
The level of activity among Dogecoin’s largest holders has experienced a sharp downturn in recent weeks, coinciding with a considerable drop in price and overall market sentiment.
The number of large transfers valued at $100k or above has significantly fallen from 20.2k weekly transactions to merely 6.2k. Similarly, transactions surpassing $1 million have decreased from 3,490 to 850 in the same timeframe. This notable decline suggests that these major holders are either leaving the market or opting to stay on the sidelines.
Is DOGE’s Price Losing Ground?
Currently, DOGE is being traded at $0.24765, marking a notable decrease from its peak in December. The 50-day moving average stands at $0.33226, providing a resistance point, while the price remains below the Fib 0.236 retracement level at $0.25608 – an indication of a sustained bearish trend.
An examination of the Bollinger Bands indicates that DOGE has been consolidating near its lower boundaries, suggesting limited fluctuations in price. If the support level around $0.20 fails to hold, the subsequent significant support is anticipated at $0.20101, as indicated by the Fibonacci retracement data.
Diminished Active Addresses and Network Involvement
The Daily Active Addresses of Dogecoin also plunged to 37.6k, a stark contrast to the peak of 1.68 million observed during its rally in November. This sharp decline points to a waning interest among individual investors, reinforcing concerns that the frenzy around DOGE may be fading.
Similarly, the MVRV Ratio (30d) dropped to -23%, indicating that a large number of holders are currently at a loss, which could deter further trading activities.
Implications for DOGE’s Future
Though Dogecoin’s whale activity and overall involvement metrics have decreased, historically, the memecoin has encountered periods of dormancy followed by explosive rallies. However, the current signals suggest a lack of significant accumulation. Therefore, a sustained surge seems improbable unless there is a resurgence in whale participation.
If the number of daily active addresses and whale transactions remains subdued, DOGE might struggle to recapture its past momentum.