Recent on-chain data indicates a marked reduction in large Dogecoin transactions, suggesting reduced activity from network whales.
Significant Decline in Dogecoin Whale Transactions Since Mid-November
Ali Martinez recently noticed a notable decline in Dogecoin’s Whale Transaction Count metric, tracking DOGE transfers of $1 million or greater, reflecting declining interest from whale investors. Higher values suggest active trading activity among these large investors while lower figures point towards diminished enthusiasm towards meme coin.
Recent trends show a peak in Whale Transaction Count during November, followed by its dramatic decrease to just 25 daily transactions – an 88% decrease – and subsequent price drop for Dogecoin, suggesting that whale activity could serve as an early warning sign of future performance for this asset. A lack of activity may portend further bearish trends while any spikes might signal future rallies.
Additionally, the Whale Transaction Count has decreased, and a ‘death cross’ between Market Value to Realized Value Ratio (MVRV) Ratio and its 200-day moving average was observed. This cross occurs when investor profitability falls beneath this average; such falls often precede significant price drops for Dogecoin.
Current State of DOGE
As of the most recent update, Dogecoin trading value stands at roughly $0.264 – representing an increase of roughly 6% over its value as of last week’s update. This data paints an incomplete picture of its market status; showing both hopeful signs of recovery as well as worrying indications of possible further downward trends.
