Dogecoin (DOGE) has seen price fluctuations as large holders, or “whales,” capitalized on a market dip. According to analyst Ali, these whales acquired over 250 million DOGE during the price drop.
The behavior of these large coin holders is closely linked to price shifts, as shown by recent charts tracking DOGE’s performance. These trends suggest that the actions of major stakeholders directly impact the asset’s value, revealing the market’s sensitivity to large transactions.
Ali shared a chart illustrating the relationship between DOGE’s price movements and investors’ holdings with 1 million and 10 million DOGE coins.
He notes that DOGE’s price tends to rise when these holders increase their positions. This pattern was particularly visible in mid-November and early December when these whales’ prices and holdings surged.
However, following the price peak on Dec. 20, both the price and whale holdings sharply declined. This suggests that after the price increase, large holders may have engaged in a sell-off or reacted to a shift in market sentiment, contributing to the subsequent drop.
Dogecoin inflows, outflows, and price dynamics
From Feb. to Dec. 2024, Dogecoin price remained stable with fluctuations in exchange inflows and outflows. Large inflows often corresponded with price increases, while outflows were noted during price declines.
A surge in price occurred in mid-December, coinciding with a sharp increase in inflows, signaling a potential rise in market confidence. However, the following price decline after Dec. 20, accompanied by increased outflows, suggests that major investors may have begun to take profits or react to negative sentiment.
Dogecoin market overview and movement
At the time of writing, Dogecoin was priced at $0.3331, marking a 17.5% increase over the previous 24 hours. Despite this impressive price rally, the 24-hour trading volume had decreased by nearly 30%, indicating a drop in overall trading activity.
DOGE’s market capitalization had risen to $49.06 billion, an increase of 22% from the previous day, signaling a strong rally. The price rose steadily throughout the day, reaching $0.34, driven by favorable market conditions or positive news.
Technical indicators point to a mixed outlook
Looking at DOGE’s 4-hour price chart and technical indicators, the Relative Strength Index (RSI) is currently at 44.13, suggesting a neutral phase for the token. The RSI has been declining, signaling weakening buying pressure and potentially forecasting a price correction.
Moreover, the Moving Average Convergence Divergence (MACD) is above the signal line, which suggests the short-term is bullish. However, narrowing momentum on the histogram indicates that there is a possibility that the upward trend will slow down and a bearish trend will prevail if the MACD line drops below the signal line.
