Multiple positive on-chain metrics today suggest that Dogecoin (DOGE) is no longer the favorite of market whales. According to data from IntoTheBlock (ITB), Dogecoin's large transaction volume in the past week is slightly above $1 billion, reflecting a minor 1% decline during this time period.
Expanding on the numbers, Dogecoin has recorded approximately 756 transactions in the week-to-date (WTD) period, compared to the more than 1,005 transactions it registered as of October 2nd. ITB defines large transactions as those involving cash movements of $100,000 or more.
The limited number of large-scale whale transactions in the Dogecoin market is indicative of the current subdued sentiment surrounding Dogecoin as a whole. According to ITB data, the number of Daily Active Addresses has also dropped significantly, reaching as low as 1.32%, with the total hovering just above 45,000.
Dogecoin has been experiencing a downward trend for quite some time. However, as of the time of writing, its price has inched up by 0.66% to reach $0.06142, as per CoinMarketCap data. Although this recovery is relatively modest and may not inspire strong confidence, Dogecoin may need to demonstrate more convincing fundamentals to maintain and sustain its price increase.
What can influence the price of Dogecoin?
Although it's challenging to provide a definitive answer to this question, Dogecoin's price can be significantly impacted by various technical indicators, including but not limited to total transaction count, average trading volume, significant transactions, and social sentiment.
Currently, there is an increase in trading volume, indicating a growth of around 2%. It's essential to maintain this upward trend to not only stabilize the price of DOGE but also set a new path for growth.
Presently, Dogecoin is showing resistance in distinctive ways, indicating that its utility may be somewhat limited across various areas.
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