According to U.Today, on-chain data for Dogecoin indicates that larger investors, or 'whales', are gradually distancing themselves from the meme-inspired cryptocurrency. This trend suggests a potential further decline in the value of DOGE, particularly in the absence of support from these significant investors. Recent data shows a noticeable decrease in the number of large transactions. As of June 2, there were only 718 transactions, a significant drop from the seven-day high of 54,000 on May 27.
This pattern indicates a significant decrease in whale activity, which could have a substantial impact on Dogecoin's value and stability. A similar trend is observed when examining the volume of large transactions. A seven-day high of 8.65 billion DOGE on May 29 was followed by a sharp decrease in volume to 4.6 billion DOGE by June 2.
Large investors, who have historically played a crucial role in maintaining and influencing the price of sentiment-driven cryptocurrencies, are showing signs of diminishing interest. This is evident in the decline in on-chain measurements as shown in the DOGE/USDT chart. The price has been struggling to stay above the important moving averages, and the Relative Strength Index (RSI) indicates a reading close to 50. The neutrality of this momentum oscillator suggests that Dogecoin is unlikely to experience a surge in volatility, hence the lack of significant moves.
Concerns about a potential drop in DOGE's price are exacerbated by the current lack of significant trading volume, which is typically required to validate long-term price increases.
