These Dogecoin Whale Transaction Stats Spell Trouble Despite Ongoing Crypto Rally
13 Fevereiro 2024 - 10:30AM
NEWSBTC
Dogecoin’s current metrics point to a confused path as the broader
crypto market rallies after Bitcoin crossed the $50,000 level.
Dogecoin has been posting some gains along with the rest of the
crypto market, but behind the scenes, the meme coin’s transaction
volume and whale transaction count have been discouraging.
Related Reading: Dogecoin Stuck In Limbo: Will Valentine’s Day
Bring Love (And Price Gains)? According to on-chain data first
shared on social media platform X by crypto analyst Ali Martinez,
Dogecoin has experienced a low transaction volume in the past few
days, fueled by a drop in trading activity from large
traders. Dogecoin’s Transaction Volume And Whale Activity
Drops According to the Santiment data shared by Ali Martinez, DOGE
has been posting gains since February 6. Still, the whale
transaction count and the total transaction volume have failed to
rise. Notably, this gain has dwindled compared to the other major
cryptocurrencies. As a result, Chainlink (LINK), which has been on
a bullish run, was able to displace DOGE out of the top 10 in terms
of market cap rankings. This decline in whale activity indicates
the current sentiment among large traders. Similarly, data from
IntoTheBlock has reiterated a decline from this cohort of traders,
as the number of daily transactions greater than $100,000 has
failed to rise above 200 in the past few days. For comparison,
daily transactions above $100,000 steadied above 1,000 throughout
January. When activity drops, but prices rise, it’s usually a sign
that a rally isn’t sustainable. This decline in activity suggests
that fewer people are using Dogecoin for payments and transfers.
Instead, Dogecoin seems to be catching up in the hype of the crypto
market rally. What Does This Mean for The Dogecoin Price
Outlook? Whales are known for their ability to move markets so that
less activity could signal lower enthusiasm. As a result,
Dogecoin’s decreasing transaction volume and whale activity could
signal some trouble for the meme cryptocurrency’s value in the
coming weeks, primarily as it relies heavily on hype and popularity
to drive up its market price. At the time of writing, DOGE seems to
be particularly facing resistance at the $0.083 price
level. However, the decreased volume doesn’t necessarily mean
Dogecoin is doomed, as the whale transaction count could pick back
up shortly. The Dogecoin Foundation recently announced an
ambitious 2024 roadmap in a recent blog post outlining the vision
for the meme coin’s future. The renewed dedication to improving
Dogecoin’s underlying technology, increasing its utility and
mainstream adoption gives a glimmer of optimism. Related
Reading: Chainlink Takes Over Dogecoin In Key Metric As Mysterious
Whale Pushes LINK Upwards At the time of writing, DOGE is trading
at $0.08235, up by 2.39% in the past 24 hours. Failure to break out
of the resistance at $0.083 could mean a reversal to the $0.0816
level. Cover image from Dall-E, chart from Tradingview
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