In recent weeks, Dogecoin (DOGE), the cryptocurrency known for its Shiba Inu dog mascot, has seen its value drop significantly. This decline comes as large investors, often called “whales” in the crypto world, have reduced their involvement in the DOGE.
Price Correction Hits Dogecoin
Dogecoin’s price has fallen by 16% over the past month, now trading at around $0.10. This downturn is largely attributed to a sharp decrease in high-value transactions by major investors.
DOGE/USD Daily Price Chart. Source: TradingView
Data reveals that transactions between $1 million and $10 million have dropped by 62%. Even more striking, transactions exceeding $10 million have plummeted by 67%. These figures suggest that big players in the market are losing confidence in Dogecoin’s short-term prospects.
DOGE whale transactions exceeding $10 million have dropped by 67%. Source: IntoTheBlock Whale Activity Slows Down
The cryptocurrency market often uses the term “whale” to describe investors who hold large amounts of a particular digital currency. These whales can significantly influence price movements with their trading activities.
A key indicator, the Large Holders Netflow to Exchange Netflow Ratio, has seen a dramatic 383% decrease. This metric tracks the movement of substantial Dogecoin holdings and its current reading indicates that whales are no longer accumulating DOGE as they once did.
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DOGE Leans Bearish but Not Yet Oversold
Despite the overall decline in whale activity, some reports suggest that certain large investors are still buying Dogecoin. This contradictory behavior could potentially set the stage for a future price increase.
It’s worth noting that Dogecoin’s performance is also closely tied to broader cryptocurrency market trends, particularly the price movements of Bitcoin, the largest cryptocurrency by market value.
RSI, currently sitting at 40.43, indicates that DOGE is neither oversold nor overbought but leans towards bearish momentum. This reading suggests that while there’s room for further decline, the cryptocurrency isn’t yet in extreme oversold territory that might signal an imminent bounce.
Support levels are crucial in determining potential price floors. The immediate support for Dogecoin lies at the psychologically important $0.10 mark, where the price is currently holding. Should this level fail to hold, traders and investors should watch for the next major support at $0.08, which could represent a buying opportunity for those bullish on DOGE’s long-term prospects.
However, if whale activity picks up or overall market sentiment improves, Dogecoin could see a reversal of its recent losses.
The post Dogecoin (DOGE) Price Dips as Major Investors Pull Back appeared first on CoinChapter.
