Price Correction Hits Dogecoin (DOGE) as Whale Activity Slows Down

In recent weeks, Dogecoin (DOGE), the cryptocurrency known for its Shiba Inu dog mascot, has seen its value drop significantly.

Cryptocurrency Dogecoin (DOGE) has seen a significant drop in its value in recent times. This decline comes as large investors, known as “whales” in the crypto world, have reduced their involvement in the DOGE.

Over the past month, Dogecoin’s price has fallen by 16%, currently trading at around $0.10. This downturn is largely attributed to a sharp decrease in high-value transactions by major investors.

According to data, transactions in the range of $1 million to $10 million have dropped by 62%. Even more notably, transactions exceeding $10 million have seen a drastic decline of 67%. These figures indicate that large investors are losing confidence in Dogecoin's short-term prospects.

In the cryptocurrency market, the term "whale" is used to describe investors who hold substantial amounts of a particular digital currency. These whales can significantly influence price movements with their trading activities.

A key indicator that has seen a dramatic decrease is the Large Holders Netflow to Exchange Netflow Ratio. This metric tracks the movement of substantial Dogecoin holdings and its current reading indicates that whales are no longer accumulating DOGE as they once did.

You May also like: Dogecoin (DOGE) Continues Sinking Despite Forming Bullish Setup

DOGE Leans Bearish but Not Yet Oversold

Despite the overall decline in whale activity, some reports suggest that certain large investors are still buying Dogecoin. This contradictory behavior could potentially set the stage for a future price increase.

It’s also worth noting that Dogecoin’s performance is closely tied to broader cryptocurrency market trends, particularly the price movements of Bitcoin, the largest cryptocurrency by market value.

Currently, the RSI for Dogecoin, indicating price momentum, stands at 40.43. This reading suggests that DOGE is neither oversold nor overbought but leans towards bearish momentum.

This reading indicates that while there’s room for further decline, the cryptocurrency isn’t yet in extreme oversold territory that might signal an imminent bounce.

Support levels are crucial in determining potential price floors. The immediate support for Dogecoin lies at the psychologically important $0.10 mark, where the price is currently holding.

Should this level fail to hold, traders and investors should watch for the next major support at $0.08, which could represent a buying opportunity for those bullish on DOGE’s long-term prospects.

However, if whale activity picks up or overall market sentiment improves, Dogecoin could see a reversal of its recent losses.

The above is the detailed content of Price Correction Hits Dogecoin (DOGE) as Whale Activity Slows Down. For more information, please follow other related articles on the PHP Chinese website!