Dogecoin Whales Go Silent, What's Going On?

Dogecoin large holders, which refer to whales, have gone silent, sparking speculation as to what might be behind the seeming disappearance.

According to Ali, a crypto analyst, whale activity on the Dogecoin network has dropped to the lowest level in the past two months.

The drop in whale activity follows a relatively quiet period in the crypto market, with the dramatic price swings that once drew in retail risk-takers softening.

Dogecoin has been trading in a range between $0.133 and $0.20 since mid-October. The top of the range at $0.20 presents a key resistance, which might halt attempts at a breakout in the event of a Dogecoin price rebound. Immediate resistance lies at $0.156, which halted Dogecoin's five-day rise on Nov. 26.

Dogecoin has fallen nearly 19% in the last 30 days amid a broader crypto slide. Now changing hands just shy of $0.15, Dogecoin is more than 78% off its 2021 all-time high of $0.73.

New ETF launch impact muted

DOGE saw newly approved spot ETFs, as Grayscale’s GDOG began trading at the week's start and Bitwise DOGE product also launched this week under the 20-day 8(a) window, creating a rare bullish catalyst even as a drop in whale activity and weak technicals keep near-term price action fragile.

Grayscale launched its DOGE ETF (GDOG) on the New York Stock Exchange, expanding institutional access to the dog coin. The debut follows ongoing ETF expansion across the crypto industry, including XRP and other altcoins. However, the ETF launch arrives at a crucial period when bullish sentiment in the market appears to be waning.

In this light, Grayscale's Dogecoin Trust ETF (GDOG) saw a debut trading volume of $1.4 million, falling short of expectations. U.S. regulators are still assessing a 21Shares application for a non-leveraged Dogecoin ETF.