Large Quantity of Dogecoin (DOGE) Transfer by Whale Stimulates Curiosity, Yet Potential Buyers Remain Cautious
Dogecoin [DOGE] saw a 33.5% decrease in trading volume over the past 24 hours, possibly due to the weekend effect on trading activity. Bitcoin [BTC]'s rejection from the $97.9k level and its subsequent 2.4% decline in under two days also impacted DOGE's performance.
Recent reports highlighted whale accumulation in the leading memecoin. A total of 100 million DOGE tokens worth $17.5 million were added to whale holdings. This whale activity might have contributed to DOGE's price surge, as it signifies strong demand and investor confidence.
Yet, other metrics suggest a more cautious outlook. The Realized Cap, which represents the value of all coins in circulation based on the last price they were moved at on-chain, shrank slightly since the 6th of April, despite the market capitalization growing. This discrepancy between Market Cap and Realized Cap hints at speculative activity by recent buyers, who might be realizing their profits. However, a positive note is that long-term holders have shown reluctance to sell, avoiding a deeper drop in the realized cap.
Wallet activity provides insights into the whale cohorts and other holder groups. The 100-1 million DOGE holding wallets saw a surge in selling on the 8th of April, but since then, these cohorts have demonstrated no accumulation. On the other hand, the 1 million-10 million, 10 million-100 million, and 100 million-1 billion Dogecoin holders have displayed buying activity after the 8th of April. Unfortunately, the Daily Active Addresses have decreased significantly from their November peak, reflecting subdued market activity.
The overall market sentiment is muted, with no clear signs of increased buying pressure. For Dogecoin to be ready for a major long-term rally, it is essential to see an uptick in activity and bullish sentiment.
Factors Impacting Dogecoin Market
- Whale Accumulation: Large investors are actively purchasing DOGE, driving the price up.
- Market Sentiment: Dogecoin's price often correlates with Bitcoin and overall market trends.
- Technical Indicators: Tools like RSI, MACD, and Fibonacci retracement levels can predict potential price movements.
- Fair Value Gap Closure: The closure of the 'Fair Value Gap' between $0.115 and $0.135 by April 2025 serves as a bullish signal.
- External Factors: Regulatory announcements and updates from bodies like the SEC and central banks impact market sentiment and price movements.
Sources:1. Santiment2. Cointelegraph3. CoinMarketCap4. CoinCodex
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- The decrease in Dogecoin's trading volume might be related to the weekend effect on trading activity, but whale accumulation of DOGE tokens could have also contributed to its price surge.
- Bitcoin's rejection from the $97.9k level and subsequent decline has impacted Dogecoin's performance over the past two days.
- Recent reports show a shrinkage in the Realized Cap since April 6th, despite the market capitalization growing, suggesting speculative activity by recent buyers.
- Wallet activity indicates that the 100-1 million DOGE holding wallets saw a surge in selling on April 8th, while 1 million-10 million, 10 million-100 million, and 100 million-1 billion Dogecoin holders have displayed buying activity after the same date.
- The overall market sentiment is muted, with no clear signs of increased buying pressure, which is essential for Dogecoin to be ready for a major long-term rally.
- Factors impacting Dogecoin market include whale accumulation, correlation with Bitcoin, technical indicators, fair value gap closure, and external factors such as regulatory announcements.
