Dogecoin Out Of Fashion? Volume & Whale Activity Plunges
February 12 2024 - 11:00AM
NEWSBTC
On-chain data shows the Dogecoin volume and whale activity have
plummeted recently, a possible indication that investors no longer
have interest in the memecoin. Dogecoin Transaction Volume And
Whale Transaction Count Have Declined As pointed out by analyst Ali
in a new post on X, DOGE trading activity has become lower
recently. There are two on-chain metrics of relevance here: the
Transaction Volume and Whale Transaction Count. The former keeps
track of the total amount of Dogecoin (in USD) involved in daily
transaction activity on the network. A high value of this metric
usually suggests that trading interest in the asset is high right
now. Related Reading: Bitcoin Flies Above $47,300, But Watch Out
For Extreme Greed On the other hand, the low metric implies not
many traders are paying attention to the memecoin currently as
little volume is transacted on the blockchain. The other metric of
interest here, the “Whale Transaction Count,” measures the total
number of transfers on the network that are at least $1 million.
Unlike the Transaction Volume, which provides information about the
network in general, the Whale Transaction Count specifically tells
us about the activity being displayed by the whales. The whales are
the largest entities on the chain, so they can hold some influence
in the market. As such, their activity can affect cryptocurrency in
one way or another. Now, here is a chart that shows the trend in
the Dogecoin Transaction Volume and Whale Transaction Count over
the last few months: Looks like both of these metrics have
registered a decline in recent days | Source: @ali_charts on X As
displayed in the above graph, both the Dogecoin Transaction Volume
and Whale Transaction Count have recently seen a drawdown towards
relatively low levels. This would imply that interest in the asset
from both the whales and retail investors may have waned in the
memecoin. Generally, when buying and selling activity is high, DOGE
is likelier to display some volatility. The chart shows that the
volatile moves the coin has observed recently all saw the metrics
register spikes. Since Dogecoin isn’t observing that many
transactions at the moment, it’s possible that the cryptocurrency’s
price will continue to range in the coming days. Related Reading:
Ethereum Breaks Above $2,400: This Metric Points To Further Upside
Any ignitions in the indicators can be to look out for, however, as
they may be a predictor for a sharp move in the price. As these
metrics only track whether trading activity is occurring rather
than if buying or selling is taking place, any volatility arising
from these spikes can take the price in either direction. DOGE
Price While Bitcoin and other top digital assets have enjoyed
profits recently, Dogecoin has slumped sideways, with returns
standing utterly flat in the past week. Currently, DOGE is trading
around the $0.08 level, as the chart below shows. The price of the
coin has been consolidating recently | Source: DOGEUSD on
TradingView Due to Dogecoin’s recent poor performance, it lost its
spot in the top 10 cryptocurrencies by market cap list to Chainlink
(LINK). If the coin’s struggle continues, it might slip further
down the list, as Tron (TRX) is lurking just behind the asset now.
DOGE appears to have a market cap of $11.4 billion right now |
Source: CoinMarketCap Featured image from Kanchanara on
Unsplash.com, charts from TradingView.com, Santiment.net
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