Dogecoin has experienced a significant decline of over 18% this week, dropping from $0.1314 to a low of $0.1045. Data from Santiment highlights strong activity from large holders, indicating potential bullish momentum for DOGE.
As the leading meme coin, Dogecoin has faced a marked price drop amid a broader downturn in the global cryptocurrency market. Its price fell from a high of $0.1314 on Sunday to $0.1045 by Wednesday, representing an 18% decrease. Despite this slump, recent on-chain data points to a potential recovery, driven by large-scale holders, commonly referred to as “whales,” as per Santiment’s analysis.
In the last 24 hours, Dogecoin’s price has dipped by over 8%, but has since rebounded slightly to $0.1085 at the time of writing, suggesting a minor recovery from the recent low.
How Are Whales Influencing Dogecoin’s Price?
- Santiment, an on-chain analytics platform, reported increased activity among major Dogecoin holders. Although some whales took profits prior to the recent price peak, they remain notably active within the ecosystem.
- Moreover, Dogecoin’s network activity has surged to its highest level in seven months, driven by a rise in active addresses and strong participation from retail investors. Whale transactions have also reached a four-month high amid the recent price dip.
- In the last three days, more than 63,000 DOGE addresses have moved their holdings, marking the highest activity level since April. Additionally, 1,203 significant whale transactions, each valued over $100K, took place before the recent peak, the highest since May.
An analysis of the four-hour price chart reveals that DOGE is undergoing a correction after reaching $0.13, down by 13.65%, though still above its previous support level. However, the 9-day and 21-day moving averages are currently above the present price, indicating the need for caution.
If Dogecoin falls below $0.10, a trend reversal could be in play, especially as the RSI moves into oversold territory. Nonetheless, DOGE has already seen a 3% bounce, suggesting a potential climb back to $0.13, or even $0.15.
