Dogecoin’s whales go missing – Is the memecoin’s hype finally fading?
- Dogecoin’s whale transactions have fallen drastically over the last few weeks
- Market sentiment was bearish as DOGE struggled below $0.25 on the charts
Dogecoin, once at the center of the memecoin mania, is now seeing a sharp drop in whale transactions and overall market activity. Large-scale transactions have dried up significantly, and retail engagement has followed suit too.
With DOGE’s price struggling to find stability right now, many are questioning whether this is just a temporary cool-down or a sign that the hype is fading altogether.
DOGE whale transactions dry up
Dogecoin’s whale activity has seen a drastic decline over the past few weeks, coinciding with a sharp downturn in price and overall market sentiment.
Large transfers worth $100k or more dropped significantly, from 20.2k weekly transactions to just 6.2k. Meanwhile, transactions exceeding $1 million tumbled from 3,490 to 850 over the same period. Such a sharp reduction hinted that whales are either exiting the market or choosing to sit on the sidelines.
DOGE’s price losing momentum?
At the time of writing, DOGE was trading at $0.24765, following a significant drop from its December highs. The 50-day moving average sat at $0.33226, acting as a resistance level, while the price remained below the Fib 0.236 retracement level at $0.25608 – A sign of sustained bearish pressure.
Source: TradingView
A closer look at the Bollinger Bands suggested that DOGE has been consolidating near its lower range, signaling limited volatility. If support around $0.20 fails to hold, the next major support level would be at $0.20101, based on the Fibonacci retracement data.
Declining active addresses and network engagement
Dogecoin’s Daily Active Addresses plummeted to 37.6k too, a stark contrast to the 1.68 million peak seen during its November rally. This steep decline alluded to that fact that retail interest has been waning, reinforcing concerns that DOGE’s hype may be fading.
A similar trend was seen in the MVRV Ratio (30d), which dropped to -23% – A sign that most holders are currently at a loss, which may discourage further trading activity.
Source: Santiment
What this means for DOGE’s future
While Dogecoin’s whale activity and overall engagement metrics have declined, the memecoin has historically seen periods of dormancy followed by explosive surges. However, the current indicators point to a lack of strong accumulation. This means that a sustained rally is unlikely, unless whale participation rebounds.
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If DOGE’s daily active addresses and whale transactions remain low, it may struggle to regain its previous momentum.