Ali, a popular crypto analyst, sees a decline in whale activity within the Dogecoin (DOGE) network. Whale transactions valued over $1 million dropped by approximately 88% from mid-November. DOGE’s price moved up and down throughout this period, experiencing fluctuations and corrections.
Transaction volume mirrored these price changes, reflecting increased trading activity during key market movements. However, recent data indicates a sharp decline in both whale transactions and overall trading volume, signaling reduced participation from large investors.
DOGE Price and Whale Activity Correlation
Following a spike in price in late November and early December, DOGE’s price had a number of corrections. In addition, the volume of transactions rose dramatically in together with these price swings. As a result, whale activity peaked, which increased market volatility.
DOGE peaked locally around the middle of December and then began to steadily drop. Whale transactions, however, continued to be active and influenced market swings. Price changes persisted in late December and early January due to increases in transaction volume.
Furthermore, DOGE experienced another price spike in mid-January, along with a rise in whale transactions and trading volume. This peak didn’t last long because the price quickly started to decline.
Market Cooling and Reduced Volatility
At the start of February, DOGE’s price kept falling. As a result of decreased market participation, transaction volume generally trended downward. A decline in whale transactions suggests a decline in large-scale trading. Hence, DOGE stabilized at $0.267 by mid-February, with reduced volatility compared to previous months.
Moreover, the observed trend suggests that large investors may have taken profits during price surges. Reduced whale transactions imply that fewer major market players are influencing price movements. Consequently, DOGE’s price movements now rely more on retail traders than institutional investors.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
