Activity among large holders of Dogecoin (DOGE) has seen a significant decline, reaching its lowest point in the last two months, as reported by cryptocurrency analyst Ali Martinez on Sunday, November 30.
Summary
- Recent data shows that large Dogecoin transactions have dropped to merely four, a stark decline from a peak of 38 transactions.
- This decrease coincides with a recent price uptick for Dogecoin, which is currently hovering near a vital support level for 2024, though it remains below the 200-day EMA.
- Technical indicators, such as the Relative Strength Index (RSI), are displaying weakness, indicating diminishing momentum as whale activity reaches a 60-day low.
The data reveals that the number of significant Dogecoin transactions has plummeted to just four, in contrast to a recent peak of 38, as noted by analyst Ali Martinez. This decline raises crucial questions about the sustainability of the cryptocurrency’s recent price movement, which has shown some short-term gains.
Martinez’s analysis highlights a concerning trend—major holders are scaling back their transactional activities, despite the token demonstrating upward price momentum. This juxtaposition suggests a potential lack of confidence from large investors.
Currently, Dogecoin trades below its 200-day exponential moving average (EMA), a technical benchmark closely monitored by traders and analysts alike.
The RSI, a popular momentum indicator, has shown negative readings following a robust rally that took place between June and September of this year, indicating waning bullish sentiment.
Ali Martinez is a well-regarded cryptocurrency analyst known for providing valuable market data and technical insights to his audience on various social media platforms.
Originally launched in 2013 as a light-hearted alternative to Bitcoin, Dogecoin has risen to become one of the most actively traded cryptocurrencies by market capitalization. However, its trading history is marked by substantial volatility, often driven by social media trends and the activity of large holders.
As of the latest update on Monday, Dogecoin has experienced a notable decline of 27% over the past month.
This recent downturn in whale activity marks a significant contrast to prior months, during which large transactions reached levels nearly ten times higher than the current figures reported by Martinez.
