1.4 Billion Dogecoin (DOGE) in 24 Hours: Whales Are Waking Up

Tue, 05/07/2024 - 14:40
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Dogecoin has seen an enormous volume of 1.4 billion DOGE transacted within just 24 hours, signaling that major players, or "whales," are significantly influencing the market. This volume, represented in large transactions, could be a sign of a potentially critical moment for the meme-based cryptocurrency.

The sheer dollar amount of large USD transactions highlights that the substantial capital flow into and out of Dogecoin is currently on the upside. When whales move such significant amounts of money, it often precedes volatility as their actions can affect the market considerably.  

Dogecoin/USDT Chart by TradingView

Alongside the volume in USD, the actual number of large transactions has also spiked. This metric is crucial because it shows not just the size but the frequency of major trades. A higher number of large transactions typically indicates increased interest from big investors, which can lead to greater liquidity and sometimes more stability in the price of a cryptocurrency, depending on the nature of the transactions (buy or sell orders).

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Large Transactions Volume relates to the actual amount of Dogecoin being transferred in these large transactions. Such spikes are indicative of whales either consolidating their positions by acquiring more DOGE or offloading large amounts, possibly to take profits or redistribute their investments

Currently, Dogecoin is trading around the 50-day Exponential Moving Average (EMA), a critical technical threshold. After reversing from a local high of $0.16 to $0.15, the focus now shifts to the 100-day EMA. However, this level may not hold as a strong support since it has not been tested recently, making its reliability uncertain.

The potential move toward the 200-day Moving Average (MA) at $0.12 could be on the horizon, especially if the whale activity continues. Such moves by large holders can create waves across the trading landscape, impacting not only price but also trader sentiment and market momentum.