Dogecoin displayed a price drop of over 18% this week, falling from $0.1314 to a low of $0.1045.
Santiment’s data shows strong whale activity, suggesting bullish momentum for DOGE.
Dogecoin, the leading meme coin, has faced a notable price drop this week amidst a broader downturn in the global cryptocurrency market. The price of Dogecoin (DOGE) tumbled by over 18% at times, falling from a peak of $0.1314 on Sunday to as low as $0.1045 by Wednesday. Despite this decline, there’s still hope that Dogecoin could regain some bullish momentum, as indicated by recent on-chain activity involving large holders, often called “whales,” according to data from Santiment.
In the last 24 hours, Dogecoin saw a dip of more than 8%. At the time of writing, DOGE is trading at $0.1085, showing a slight recovery from its recent intraday low.
How Are Whales Impacting Dogecoin’s Price?
On-chain analytics platform Santiment shared an update today highlighting increased activity in Dogecoin’s network, among major holders. Santiment noted that although whales took profits just before the recent price peak, they still remain highly active within the Dogecoin ecosystem.
Additionally, Dogecoin’s network activity has reached a 7-month high in the number of active addresses, with retail investors also showing strong participation. Whale transactions have spiked to a 4-month high in activity observed amid the recent price dip.
Over the past three days, more than 63,000 DOGE addresses moved their holdings, marking the highest level of activity since April. Additionally, 1,203 whale transactions, each exceeding $100K, preceded the recent price peak, showing the highest whale participation since May.
A closer look at the 4 hours chart indicates that DOGE is correcting after hitting $0.13, down 13.65%, but still above previous support. But the 9-day and 21-day moving averages are above the current price, indicating caution.
If the memecoin falls below $0.10, a trend reversal may occur as RSI pushes into oversold territory. Nonetheless, Dogecoin has already managed a 3% bounce, hints at a potential climb back to $0.13 or even $0.15.
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