Dogecoin Whale Activity Slows As Market Cap Falls 49%

• Dogecoin whale transactions above $100K dropped from 20.2K to 6.2K, indicating lower investor interest and market liquidity.
• The price has dropped 49% to December 7, trading at $0.24-$0.25, with a drop to $0.10-$0.14
• Resistance at $0.36-$0.32 continues to be key, and investors follow whales for indications of buying and a potential reversal in trends.

Dogecoin has experienced a steep decline in its whale transactions, and its market capitalization suffered a big blow as a result. A decrease in large-ticket transactions can equate to reduced activity from institutional investors, and it occurs in an overall downtrend in price.

Recent data from Santiment revealed a significant dip in Dogecoin whale transactions. In a post, $100K+ transactions have gone below a third of their early November high, a sign of a sharp slowdown in big player activity.

Declining Whale Trades and Market Action

The number of Dogecoin transactions worth over $100,000 has fallen to 6,200, down from 20,200. Transactions worth over $1 million have fallen to 850, down from 3,490. That drop reflects fewer larger investors in circulation in the marketplace.

Dogecoin’s market value declined 49% since its December 7th high level. Lower activity in whales reflects less liquidity and no strong buying demand for institutional investors.

Price Trend and Key Support Levels

The Dogecoin after reaching a high of around $0.50, has been on a downtrend since then. Dogecoin has been making repeatedly lower highs and lower lows, which is proof of a downtrend. At press time, Dogecoin was at $0.2481, down 1.80% in 24 hours of trading and 22.85% over seven days. 

The token is testing a strong support level between $0.24 and $0.25. A breakdown below the range could drive the price even towards the next strong support level between $0.10 and $0.14, an older resistance level before Dogecoin’s breakout in October.

Resistance and Potential Price Movements

Resistance levels at $0.32 and $0.36 are important in terms of price rejection in the past and at the channel’s descending midpoint. In case Dogecoin is about to break through, a reversal towards increased price could occur. Nevertheless, sustained sell pressure and lack of activity in whales can hinder a breakaway.

Dogecoin is in a firmly established downtrend channel at present. Short-term relief can occur, but only if the price holds at the $0.24 level. Otherwise, weakness can intensify.