Dogecoin (DOGE) shows a strong technical setup, with on-chain indicators suggesting significant price changes ahead. Over the past month, Dogecoin's value has dropped by 19% amid high market volatility.
High-Volume Dogecoin Transactions
Transaction activity is a crucial metric indicating traders' interest in cryptocurrency. According to on-chain data, over the last 24 hours, there were more than 983 large Dogecoin transactions worth 5.56 billion DOGE. Although this trading activity is sizeable, it is still less than the seven-day high of 10.09 billion DOGE. A decline in whale activity suggests an overall decrease in transaction volumes, which could be a bearish signal for DOGE. Amid the drop in whale participation, the market could become illiquid and more volatile, causing significant price swings.
Concentration of Big Owners
There's a massive concentration of Dogecoins held by large holders, currently at 62%. This shows that several wallets control a sizeable portion of the entire supply. A high concentration among large holders can have dual impacts. First, if these are long-term holders, they can promote price stability. However, if they decide to sell-off during a price surge, it can create strong selling pressure. The current concentration of DOGE ownership suggests that its price is highly susceptible to the actions of a small group of influential holders.
DOGE Netflows and Network Activity
The total Dogecoin exchange net flows and network activity provide greater insight into the DOGE price movement ahead. Although there have been some inflows into Dogecoin, network growth seems to be on the decline, suggesting less participation from new investors. The stagnating user adoption halts the long-term growth of Dogecoin, which could also impede the surge in DOGE price. Currently, Dogecoin is facing strong resistance around its 100-day Exponential Moving Average (EMA) standing at $0.1073. If the DOGE price fails to overcome this resistance, it could decline by 24% to retest its next weekly support at $0.0782.
Dogecoin faces high volatility and significant price fluctuations amid a decline in whale activity and the concentration of coins in the hands of a few. Future price movements will depend on transaction activity dynamics and the behavior of large holders.
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