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Latest Dogecoin price seems to be running out of breath follows an impressive explosion that pushed its price above $0.21 for the first time since April to mark a significant seven-month high. This powerful week of ascension has been followed by profit taking by traders, which caused the price of Dogecoin to decline. At the time of writing, the price of Dogecoin has again fallen below the threshold of $0.20, which brings the idea of ​​further price decline.
Adding to the concern, on-chain data revealed a significant drop in the volume of large transactions among Dogecoin owners. This decline in significant buying activity reflects waning enthusiasm from large investors, suggesting that the meme coin may be facing increasing pressure to hold on to recent gains.
DOGE High Volume Crash: Are Dogecoin Whales Selling?
Price action and on-chain data suggest that Dogecoin traders are starting to turn a profit after a week of intense price rally. Notably, in the chain analytics from IntoTheBlock (ITB) shows that the volume of large Dogecoin transactions has dropped significantly, with a 36% decrease seen in the last 24 hours.
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The shift may indicate that major Dogecoin holders are starting to reduce their exposure to the meme cryptocurrency after taking advantage of recent gains. This interesting trend is revealed by IntoTheBlock’s ‘Large Transactions Volume in USD’ metric, which tracks the cumulative amount of transactions valued at $100,000 or more.
This ‘Large Transactions Volume in USD’ puts the value of DOGE’s large transactions at $3.46 billion in the last 24 hours, which represents a 36% decrease from the $5.38 billion volume registered on November 6. Interestingly, this change in trend is especially noticeable when you consider. the fact that trading volume has been in an uptrend from November 2.
Similarly, the ‘Large Transactions Volume’ metric shows that 17.76 billion DOGE tokens were moved in 2.72 transactions in the last 24 hours. This also represents a 36% decrease from the 27.7 billion tokens moved in 4,150 transactions on November 6.
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What Does This Mean for Dogecoin Price?
Such a sharp decline in both transaction volume and capital trading volume may indicate a shift in market sentiment as whales appear to be exercising caution. However, the decline in large buying activity does not reflect widespread selling by large owners. It may simply indicate a pause in significant buying as whales fold in adding to their positions in anticipation of a pullback.
That said, the price data suggests that some owners are indeed selling. At the time of writing, Dogecoin is trading at $0.1984 and could not immediately try another push over the $0.20 mark. On the other hand, the decline in momentum saw Dogecoin retesting the support at $0.187.
The featured image was created with Dall.E, a chart from Tradingview.com
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