Dogecoin’s rally has appeared to lose momentum as it stalls out, according to seven month high price tag above $0.21. Dogecoin price surged, but profit taken dragged it down below the $0.20 level. The sell off hints further declines could lie ahead for the meme coin, which is changing hands at $0.1984.
On chain data shows a massive drop in the volume of large transactions made by the major holders of the Dogecoin. According to analytics from IntoTheBlock (ITB), the number of large transactions ($100,000 or more) has fallen by 36 per cent in the past 24 hours, from $5.38 billion to $3.46 billion on November 6.
Dogecoin Shifts From Positive Trend Amid Transaction Drop
This is a major change off of a positive trend of higher volume transaction volume that had been going on since November 2. This decrease is also manifested in the amount of tokens moved. Meanwhile, the data shows that 17.76 billion DOGE tokens were transferred in 2,720 large transactions on the chain over the last day, a decline of 36 percent from 27.7 billion tokens in 4,150 transactions recorded two days prior.
If that means fewer transactions, it could also be signaling a shift in the market’s sentiment larger investors, or “whales,” appear to be taking a wait and see approach after taking advantage of recent gains.
The drop in large transaction activity is not necessarily a sign of widespread selling by major holders, however. Some of the major investors may be holding out for a price pullback and want to see what happens before they invest further.
But price data at least indicates some selling. Dogecoin’s struggle to maintain the $0.20 level could be indicative for Dogecoin to push upwards, or it could retest its support at around $0.187. This is a time of caution by investors as falling transaction volume and depressing prices indicate a time when traders are watching for signs of a trend bottoming out or continuing to fall.
