Large Transaction Volume Crashes 36% In 24 Hours As Dogecoin Price Fails At $0.2, Are Whales Selling?
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Dogecoin’s recent price rise He seems to be losing his strength the next Impressive breakthrough Which pushed its price above $0.21 for the first time since April, hitting a notable seven-month high. This has been an intense week of bullish action Followed by making profits By traders, which led to a decline in the price of Dogecoin. At the time of writing, the price of Dogecoin has fallen below the $0.20 threshold again, giving rise to the idea of further price decline.
Adding to the concerns, on-chain data reveals a significant decline in the volume of large transactions among Dogecoin holders. This decline in significant buying activity indicates waning enthusiasm from major investors, suggesting that the meme coin may face increasing pressure to hold on to recent gains.
Large DOGE Transaction Volume Crashes: Are Dogecoin Whales Selling Out?
Price action and on-chain data indicate that Dogecoin traders are starting to take some profits after a week of intense price rise. Notably, on the chain Analytics from IntoTheBlock (ITB) reports that Dogecoin’s large transaction volume has decreased significantly, with a 36% drop in the past 24 hours.
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This shift could indicate that large Dogecoin holders are starting to reduce their exposure to the cryptocurrency after benefiting from recent gains. This interesting trend is revealed by IntoTheBlock’s “Large USD Transaction Volume” metric, which tracks the total value of transactions of $100,000 or more.
This “large USD transaction volume” puts DOGE’s large transaction value at $3.46 billion in the past 24 hours, representing a 36% decline on the $5.38 billion volume recorded on November 6. Interestingly, this change in trend is particularly noteworthy given the fact that the trading volume It was on the upside Since November 2nd.
Likewise, the “Large Transaction Volume” metric shows that 17.76 billion DOGE tokens were transferred in 2.72 transactions in the past 24 hours. This also represents a 36% decrease in the 27.7 billion tokens transferred in 4,150 transactions on November 6.
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What does this mean for the price of Dogecoin?
This sharp decline in transaction volume and the number of large trades may reflect a shift in market sentiment as whales appear to be cautious. However, a decline in large transaction activity does not necessarily indicate widespread selling by large holders. This may simply reflect a pause in large buying as whales are reluctant to add to their positions in anticipation of a pullback.
However, price data suggests that some holders are already selling. At the time of writing, Dogecoin is trading at $0.1984, and it may be possible Soon try another batch Above the $0.20 mark. On the flip side, a momentum breakdown could lead to a retest of Dogecoin support at $0.187.
Featured image created with Dall.E, chart from Tradingview.com
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