Are Dogecoin Whales Withdrawing from the Meme Coin? Large Transactions Drop to Two-Month Lows

Dogecoin's recent price movements have taken an unexpected route, as on-chain data indicates that whale transactions have plummeted to levels not seen in over two months. This significantly reduced activity among whale addresses has led Dogecoin to dip to a crucial support level, raising concerns about whether large investors are distancing themselves from this popular meme cryptocurrency.

Key Takeaways

Whale transactions on Dogecoin have decreased to two-month lows, with only 4 large transactions occurring in a single day.
Currently, there has been a slight recovery with 11 transactions, but this is still under the levels needed for healthy market activity.
Price trends reveal Dogecoin is experiencing its longest accumulation phase, characterized by overwhelming bearish sentiment.
Recent price movements could indicate retail trading activity rather than substantial participation from whale investors.

Dogecoin: коррекция, паника и шанс для новых мемкоинов

Decline in Dogecoin Whale Activity

Recent data from on-chain analytics platform Santiment shows that large transactions in the Dogecoin blockchain have dropped to as low as 4 transactions in a single day, marking a two-month low in whale participation. Santiment designates transactions valued at $1 million or more as whale transactions. This decline is particularly striking compared to the peak trading period in October and early November when whale activity reached 212 transactions on October 11.

This downward trend continues the cooling off of Dogecoin observed over recent weeks. The activity of large holders often reflects the strategies of institutional or high-volume investors. Consequently, the current dip suggests that these major players are either waiting for more favorable trading conditions or reducing their investments in the meme coin.

As of the latest data, Santiment reports 11 Dogecoin whale transactions in the past 24 hours. While this represents a modest increase from the alarming low of four transactions, it is still significantly below the healthy trading activity typically expected for a cryptocurrency that thrives on bursts of market sentiment. The decreased level of transfers is especially significant as Dogecoin attempts to maintain a crucial price point above $0.15.

Dogecoin whales 1

Source: Santiment

DOGE Maintains Support, But Technical Momentum Diminishes

The price action of Dogecoin over the past few weeks has largely been bearish, and technical analysis indicates that the meme coin is currently experiencing its longest accumulation phase since its launch.

Dogecoin whales 2

Source: @galaxyBTC On X

In the last 24 hours, Dogecoin has shown a brief resurgence, bouncing from a low of $0.134 and climbing about 11%. However, this recovery appears to stem more from retail traders rather than a significant resurgence of whale activity. This observation correlates with reduced incoming funds to Spot Dogecoin ETFs and generally low engagement from major holders.

It's challenging for Dogecoin's price to establish a solid upward trend without substantial purchases from whales. The behavior of whale investors is critical; earlier in the year, on October 11, whale transactions surged to 212, primarily consisting of sell orders. This sell-off led to a swift decline, with the price of Dogecoin plummeting from $0.25 to $0.18 within just one day.

Dogecoin price chart from Tradingview.com

DOGE price recovery from lows | Source: DOGEUSDT on Tradingview.com

This rewritten article aims to convey the original content more clearly, making it easier for beginners to understand while highlighting the key points regarding Dogecoin's market status and whale activity.