Whales get rid of Dogecoin. What will happen to the price?
Recent analytics tracking Dogecoin's network activity hint that major stakeholders are gradually exiting their positions, moving away from the favored meme cryptocurrency. This shift forebodes a potential slump for DOGE if it continues to lose the pivotal support from heavyweight investors.
The potential for further downturns in DOGE's market value seems likely, especially without the vital encouragement from major financial backers. This bleak outlook is further substantiated by the latest figures and graphical data. A noticeable reduction in large scale transactions is evident. As of June 2, the count was just 718, a sharp fall from the May 27 peak of 54,000 transactions within a week.
This trend paints a picture of a significant drop in activity from the so-called whales, which could markedly affect both the price and the stability of Dogecoin. A similar trajectory is observed in the volume of hefty transactions where, after reaching a weekly zenith of 8.65 billion DOGE on May 29, there was a dramatic slump to 4.6 billion DOGE by June 2.
The flagging interest from influential investors, who have traditionally played a vital role in buoying and shaping the market sentiment around cryptocurrencies driven by social media and hype, is reflected in these declining metrics. This downtrend in enthusiasm can be discerned in the DOGE/USDT trading patterns, where struggles to remain buoyant above key moving averages are evident.
Moreover, with the Relative Strength Index (RSI) hovering around the 50 mark, it suggests a neutral momentum, further indicating that Dogecoin might not witness any significant volatility or exciting price movements shortly.
For sustainable rallies in price, a robust trading volume is generally seen as a prerequisite. The prevailing shortage of notable trading activity fuels apprehensions concerning a potential plummet in DOGE's market price.
