Dogecoin cryptocurrency, which started as a meme coin and became prominent due to the support of Elon Musk, has been enjoying increased on-chain transactions within the last several years. In September, it got a peak in whale activity with 1200+ transactions.
Dogecoin has retraced -18% from its top back on Saturday. But on-chain activity indicates that whales may not be done with all the bullish momentum of crypto's top meme coin. Though they took profit just before the top, their activity remains very high on DOGE's network. pic.twitter.com/FsmWJGkSE6
— Santiment (@santimentfeed) October 2, 2024
Data from Santiment also show that the number of active addresses of Dogecoin has reached the highest level in seven months, and the number of transactions by ‘whales,’ meaning the wallets with large balances, has reached a four-month high.
Whale Transactions Spike Ahead of Dogecoin Price Dip
As of September 28, 2024, Santiment data reported a peak in whale activity, with 1,203 transactions right before a dip in the market. These whale transactions were above $100K worth of DOGE, the highest values since May 26-28, 2024. This implies that although the retail traders were cautious, the whales were active big-time, probably booking some gains before a dip.
This wave of activity from large holders happened before Dogecoin’s recent 18% price correction from its top back on Saturday. However, analysts note that whales might still have hope for DOGE’s future and hint at further bullishness. This changing trend of whale transactions shows that the market is becoming more active, with more prominent players entering the crypto market.
DOGE Addresses See a Surge in Transfers
Another interesting analysis is that 63,689 addresses traded DOGEs in three days. This is now the most significant such stretch since April 05, 2024, as there is more focus on Dogecoin transactions.
The increase in the number of active addresses may be attributed to a revived participation by institutional buyers and retail investors. Thus, retail investors sold their DOGE during the price drop, while whale transactions and other on-chain indicators show continuous interest in the market. This indicates that while the price may have corrected, fundamentals on the Dogecoin network remain healthy, particularly for its key players.
What Does This Mean for Dogecoin’s Future?
Lately, Dogecoin has registered a significant increase in whale transactions and active addresses, so the market is basically at a crossroads. While the 18% correction indicates a pullback, the increased engagement of the whales complicates the situation and points to the ongoing bullish trend.
If whales keep on buying or investing in their DOGE reserves, then this may well be a positive signal for longer-term growth. However, traders and buyers in the retail market have found the recent decline an important lesson for investing in meme coins such as DOGE.
So, as long as Dogecoin is influenced by transactions involving large holders or whales and on-chain activity, its price fluctuations are expected to be unpredictable. On the basis of the analyzed trends, it is important for investors not only to follow the on-chain indicators and the DOGE market trends but also to have an idea of what its further direction may be.
