THE Dogecoin price succumbed to strong bearish pressure late on Friday, June 7, falling below the $0.15 level for the first time in June 2024. The meme token appeared stuck in a consolidation range all week, with the latest decline price will be another potential. source of concern for most investors.
However, a surge in whale activity has been observed on the blockchain recently, suggesting that the latest price drop is likely a temporary setback and that Dogecoin’s value could soon rise again.
Dogecoin Whale transactions hit new high since March
In a recent post on the platform, popular crypto analyst Ali Martinez revealed that Dogecoin whales have been active in recent days. The relevant blockchain metric here is Santiment’s Whale Transaction Count metric, which tracks the number of whale transactions executed on a blockchain in a single day.
According to the crypto expert, more than 150 DOGE transactions (each worth over $1 million) were recorded over the past day. As the chart below shows, this represents the highest level on the metric since mid-April.
A chart showing DOGE's whale transaction count | Source: Ali_charts/X
Given the scale of these transactions, they may be associated with large investors – commonly referred to as whales – from Dogecoin. This cohort of investors is relevant because of the size of their holdings and, often, the scale of their transactions.
However, it should be noted that the motivation or direction of these transactions remains unclear. It remains to be seen whether these whales are accumulating Dogecoin in anticipation of rising prices or in order to dump their holdings.
Accumulation by large investors may be a positive sign and a potential catalyst for DOGE’s price rebound. On the other hand, if whales sell their tokens, the significant bearish pressure could cause the price of Dogecoin to fall further. Regardless, whale activities are still worth monitoring, especially given their potential impact on market dynamics and volatility.
Meme coin market in turmoil?
THE cryptocurrency market has been under intense selling pressure since Friday afternoon, its capitalization having fallen by almost 3% in less than 24 hours. Specifically, the meme coin sector has been one of the biggest losers in the current sluggish market situation.
The value of Dogecoin, the largest meme token by market capitalization, decreased by 7% in the last 24 hours. Meanwhile, GameStop-inspired meme coin GME is currently the biggest loser in the market, with a 37% price drop.
The price of DOGE at $0.14830 on the daily timeframe | Source: DOGEUSDT chart on TradingView
Featured image from Unsplash, chart from TradingView
