Dogecoin's Whale Transactions Plummet, Hype Fades

Dogecoin, once a darling of the crypto market, has seen a significant decline in whale transactions and overall market activity in recent weeks. Large-scale transactions have dried up, and retail engagement has followed suit, raising questions about the sustainability of the memecoin's hype.

Dogecoin's whale activity has plummeted, with weekly transactions worth $100k or more dropping from 20.2k to just 6.2k, and transactions exceeding $1 million tumbling from 3,490 to 850. This sharp reduction suggests that whales are either exiting the market or choosing to sit on the sidelines.

At the time of writing, Dogecoin was trading at $0.24765, following a significant drop from its December highs. The 50-day moving average sat at $0.33226, acting as a resistance level, while the price remained below the Fib 0.236 retracement level at $0.25608, indicating sustained bearish pressure. A closer look at the Bollinger Bands suggested that Dogecoin has been consolidating near its lower range, signaling limited volatility. If support around $0.20 fails to hold, the next major support level would be at $0.20101.

Dogecoin's daily active addresses have also plummeted, from a peak of 1.68 million during its November rally to just 37.6k. This steep decline indicates that retail interest has been waning, reinforcing concerns that Dogecoin's hype may be fading. The MVRV Ratio (30d) has dropped to -23%, suggesting that most holders are currently at a loss, which may discourage further trading activity.

While Dogecoin has historically seen periods of dormancy followed by explosive surges, the current indicators point to a lack of strong accumulation. A sustained rally is unlikely unless whale participation rebounds. If Dogecoin's daily active addresses and whale transactions remain low, it may struggle to regain its previous momentum.