July 18, 2024


Dogecoin whales have been on the move as DOGE price action calms down. With bulls taking a backseat, where could Dogecoin price be headed?

Dogecoin (DOGE), has been the center of attention for over 10 days as price action chalked up close to 140% gains. DOGE price rallied amid the hype of Elon Musk’s $44 billion acquisition of Twitter. 

While the DOGE rally was largely Musk and Twitter driven, at press time, amid negative sentiment from the Twitter layoffs and other news, Dogecoin price was trading in red. On Nov. 4, at the time of writing, DOGE price traded at $0.1271, or 2.86% down on the day. 

And as the news of Twitter halting its plans to build a crypto wallet was reported, DOGE price sank further – plunging by almost 10% 

Social Euphoria Fading 

Dogecoin price peaked around the $0.158 level on Nov. 1 after which price started to make lower highs. Notably, social volumes and weighted social sentiment also peaked around the same time. 

Source: Santiment Social Volume Dogecoin (DOGE)
Source: Santiment

With price noting a pullback, social volumes and weighted social sentiment were both back to the lower levels presenting a fading interest from participants. 

DOGE trading volumes had a similar divergence presenting a peak just when prices were starting to appreciate. However, a waning interest from the retail side could be spotted in the lower trading volumes.

Source: Santiment Trading Volume Dogecoin (DOGE)
Source: Santiment

Furthermore, transaction count for DOGE also presented a bearish divergence falling to near all-time low levels. A low transaction count presented how fewer successful transactions were happening on the blockchain.

Transaction Count Dogecoin (DOGE) Source: Santiment
Source: Santiment

Dogecoin Whales Fleeing?

As DOGE price spiked to a six-month-high, Dogecoin whales were seemingly tempted to take profits. A look at DOGE supply held by balance of addresses showed that most addresses holding a high number of DOGE coins had reduced their holding. 

Percentage of stablecoin total supply of Dogecoin (DOGE) held by whales with more than $5m
Source: Sanbase
Source: Sanbase

Addresses holding 1,000-10,000 coins have reduced their holding most considerably, from 1.22% to 1.20%. 

Additionally, data from whale alert showed that 40,501,820 DOGE worth over $5 million was transferred from an unknown wallet to Binance. Generally, coins moving from wallets to exchanges means an attempt to liquidate and take profit. 

With DOGE whales acting skeptical the key price level to watch out for would be the $0.113 mark. Data from IntoTheBlock’s In and Out of Money Around the Price Indicator suggested that the $0.113 level could act as a solid support for DOGE but before that there’s not much support for bulls. 

IntoTheBlock In and Out of Money Around the Price Indicator
Source: IntoTheBlock

At the $0.113 level, 11,400 addresses hold around 9.09 billion DOGE. However, in case of the bearish invalidation, if price takes a turn for the better, the $0.127 level can act as the next resistance where 40,870 addresses hold 2.4 billion DOGE. 

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