The price of Dogecoin succumbed to severe bearish pressure in the late hours of Friday, June 7th, dropping below the $0.15 level for the first time in June 2024. With the meme token looking stuck in a consolidation range all week long, the latest price drop will be another potential source of concern for most investors.
However, a burst of whale activity has been observed on the blockchain recently, suggesting that the latest price decline is likely a temporary setback and that Dogecoin’s value may rise again soon.
Dogecoin Whale Transactions Hit A New High Since March
In a recent post on the X platform, popular crypto analyst Ali Martinez revealed that Dogecoin whales have been active in the past few days. The relevant blockchain indicator here is Santiment’s Whale Transaction Count metric, which keeps track of the number of whale transactions executed on a blockchain in a single day.
According to the crypto pundit, more than 150 DOGE transactions (each worth over $1 million) have been recorded in the past day. As shown in the chart below, this represents the metric’s highest level since mid-April.
A chart showing DOGE's whale transaction count | Source: Ali_charts/X
Considering the size of these transactions, they can be associated with large investors – commonly known as whales – of Dogecoin. This cohort of investors is relevant because of the size of their holdings and, often, the magnitude of their transactions.
However, it is worth noting that the motivation behind or direction of these transactions is still unclear. It remains to be seen whether these whales are accumulating Dogecoin in anticipation of price growth or in order to offload their holdings.
Accumulation by large investors can be a positive sign and a potential catalyst for DOGE’s price rebound. On the flip side, if the whales are selling their tokens, the substantial bearish pressure may spell further downside for the price of Dogecoin. In any case, whale activities are always worth looking out for, especially given their potential impact on market dynamics and volatility.
Meme Coin Market In Turmoil?
The cryptocurrency market has been under intense selling pressure since Friday afternoon, with its capitalization falling by nearly 3% in less than 24 hours. Specifically, the meme coin sector has been one of the biggest losers in the current sluggish market condition.
The value of Dogecoin, the largest meme token by market capitalization, has declined by 7% in the last 24 hours. Meanwhile, the GameStop-inspired meme coin, GME, is currently the largest loser in the market, with a 37% price decline.
The price of DOGE at $0.14830 on the daily timeframe | Source: DOGEUSDT chart on TradingView
Featured image from Unsplash, chart from TradingView
Credit: Source link