This article is available in Spanish.
The recent Dogecoin price rally seems to be losing steam next an impressive wave that pushed the price above $0.21 for the first time since April, marking a notable seven-month high. This intense week of upward movement has passed followed by profit taking by traders, which has caused a drop in the Dogecoin price. At the time of writing, the Dogecoin price has once again fallen below the $0.20 threshold, bringing with it the idea of further price drops.
Adding to the concerns, on-chain data shows that the volume of large transactions among Dogecoin holders has declined significantly. This drop in significant buying activity signals waning enthusiasm among major investors, suggesting the meme coin may come under increasing pressure to maintain recent gains.
Major DOGE Transaction Volume Crashes: Are Dogecoin Whales Selling?
Price action and on-chain data suggest that Dogecoin traders are starting to make some profits after a week of intense price appreciation. Particularly on the chain analyzes of IntoTheBlock (ITB) indicates that the volume of large Dogecoin transactions has fallen significantly, down 36% in the last 24 hours.
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The shift could indicate that large holders of Dogecoin are starting to reduce their exposure to the meme cryptocurrency after benefiting from recent gains. This interesting trend is revealed through IntoTheBlock’s ‘Large Transaction Volume in USD’ metric, which tracks the collective value of transactions worth $100,000 or more.
This “large transaction volume in USD” estimates the value of large DOGE transactions at $3.46 billion in the last 24 hours, which represents a 36% decline from the $5.38 billion volume recorded on November 6. Interestingly, this change in trend is especially notable considering that the fact that trading volume was on an upward trend since Nov 2
Similarly, the “Large Transaction Volume” metric shows that 17.76 billion DOGE tokens were moved in 2.72 transactions in the last 24 hours. This also represents a 36% reduction in the 27.7 billion tokens moved in 4,150 transactions on November 6.
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What does this mean for the Dogecoin price?
Such a sharp decline in both transaction volume and the number of large transactions could reflect a shift in market sentiment as whales appear to be cautious. However, the decline in major transaction activity does not necessarily indicate a widespread sell-off by major investors. It could simply reflect a lull in significant buying as whales are reluctant to add to their positions in anticipation of a pullback.
That said, price data suggests that some holders are indeed selling. At the time of writing, Dogecoin is trading at $0.1984 and it could be will try again soon above the $0.20 limit. On the other hand, a dip in momentum could see Dogecoin retest the support at $0.187.
Featured image created with Dall.E, chart from Tradingview.com
Credit : www.newsbtc.com
