Dogecoin (DOGE) has experienced a 16% price drop over the past month, currently trading at $0.10. Analysts are pointing to a significant decline in activity from large investors, often referred to as "whales," as a primary culprit.
Data from blockchain analytics firm IntoTheBlock reveals a dramatic reduction in high-value DOGE transactions. The number of transactions ranging from $1 million to $10 million has plummeted by 62%, while those exceeding $10 million have dropped by a staggering 67%.
This downturn in whale activity is indicative of a waning confidence in the cryptocurrency among these major players. Furthermore, the Large Holders Netflow to Exchange Netflow Ratio has plunged by 383%, suggesting a substantial shift in DOGE holdings away from long-term storage and towards exchanges, potentially for sale.
The correlation between the decrease in whale activity and the price decline of Dogecoin underscores the significant influence these large investors have on the cryptocurrency market. As the cryptocurrency market remains volatile, investors are closely monitoring whale behavior for potential indicators of future price movements.
August 2024, Cryptoniteuae