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In a tweet, on-chain analytics platform Santiment noted that Dogecoin's whale impact has fallen off the cliff with its large holders (or whales) going silent in recent weeks. Dog-themed cryptocurrency Dogecoin (DOGE) has seen a slowdown in whale transactions, which coincides with its market cap shrinking by 49% since its Dec. 7 high.
According to Santiment, Dogecoin whale transactions have dried up in a hurry as large transactions, which refer to those $100,000, have dropped to less than a third of what they were in early November. Weekly $100,000 DOGE whale transactions went from 20,200 to 6,200, while $1 million weekly DOGE whale transactions went from 3,490 to 850.
Santiment suggests keeping an eye on a resurgence in whale transactions, as it could signal that large holders are accumulating once again. If whales reenter the market, this could be positive for Dogecoin.
Tomiwabold OlajideFor now, DOGE remains in a wait-and-see phase, with whale silence indicating potential consolidation. Until then, traders should watch key levels and on-chain signals for clues about DOGE’s next major move.
What's next?
Dogecoin extended its declines following Monday's bounce from lows of $0.201 to mark four straight days of falls. In Saturday's session, Dogecoin has barely made a price movement, fluctuating between $0.244 and $0.25.
At the time of writing, Dogecoin was down 2.95% in the last 24 hours to $0.247 and down 24% weekly.
Dogecoin is currently trading between its daily moving averages of 50 and 200, at $0.332 and $0.229, respectively. A break above or below may indicate the direction of Dogecoin's next move. The daily RSI has flattened near 30, suggesting potential price consolidation in the short term.
A relief rally is expected to face selling at $0.30 ahead of the daily SMA 50 at $0.33. If the price falls from here, Dogecoin might retest the $0.20 support.
In the coming days, fingers are crossed for major developments in the Dogecoin ecosystem. In a recent tweet, Dogecoin Foundation director Timothy Stebbing hinted major Dogecoin announcements are on the horizon in coming weeks.
Godfrey Benjamin
Tomiwabold Olajide
Dan Burgin
Vladislav Sopov