Dogecoin Whale Trades Reach a 60-Day Low Despite Support Level Testing

Summary: Despite Dogecoin testing key support levels in 2024, the activity from large holders, often referred to as whales, has decreased significantly, reaching a 60-day low. This article explores the implications of this decline and what it means for the future of Dogecoin as it continues to trade below its 200-day exponential moving average.

Key Takeaways

Dogecoin whale activity has hit a 60-day low as large transactions have diminished sharply.
The cryptocurrency is currently testing critical support levels while trading below its 200-day EMA.
Despite a short-term price increase, the sustainability of this movement is uncertain.
The decline in whale activity marks a significant change from recent months when large transactions were much more common.
Dogecoin’s history has shown significant volatility, often driven by social media trends and whale behavior.

Dogecoin whale trades chart testing key support level

Decline in Dogecoin Whale Activity

Recent data shared by cryptocurrency analyst Ali Martinez highlights a significant drop in Dogecoin transactions conducted by large holders, commonly known as whales. The number of high-value Dogecoin transactions has plummeted to just four, compared to a recent peak of 38. This noteworthy decline has occurred even as Dogecoin begins to show some signs of a price increase, leading to questions about how long such momentum can last.

Dogecoin's Support Levels

Martinez's analysis indicates that major holders are pulling back on their transaction activity, despite the recent upward price trend for Dogecoin. The cryptocurrency is trading close to a support level that has been tested multiple times this year. It is currently positioned below its 200-day exponential moving average (EMA), a key technical indicator that many in the market keep a close eye on.

Additionally, the Relative Strength Index (RSI)—which measures the momentum of an asset—has shown negative trends since the end of a significant rally that took place from June to September.

"$DOGE is entering the longest accumulation phase since its inception.

Many are patiently waiting for the Dogecoin season to kick off, which could potentially start a real altcoin season."

— Galaxy (@galaxyBTC)

Dogecoin: A Parody Turned Popular Asset

Initially created as a joke in 2013, Dogecoin has solidified its position among the most heavily traded digital currencies, noted for its market capitalization. The coin has a history of notable price fluctuations, often driven by social media buzz and significant transactions from large holders.

The recent drop in whale activity represents a marked change from previous months, where large transactions were nearly tenfold the current figures, as per available data. This shift raises questions about the potential future trajectory of the cryptocurrency.