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Dogecoin on-chain data suggests that whales are slowly abandoning their positions and distancing away from the beloved meme coin. Unfortunately, there is the possibility of a further breakdown for DOGE, especially without the much needed support of larger investors.
Regretfully, DOGE may experience additional breakdowns particularly in the absence of the crucial backing from bigger investors. The current state of affairs is better illustrated by recent data and charts. There has been a discernible decrease in the quantity of large transactions. By June 2, there were only 718 transactions, down from a seven-day high of 1 point 54,000 on May 27.
This pattern suggests a notable decline in whale activity, which may have a substantial impact on Dogecoin’s value and stability. A similar pattern emerges when one looks at the volume of large transactions. A seven-day high of 8.65 billion DOGE on May 29 was followed by a precipitous decline in volume to 4. 6 billion DOGE by June 2.
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Large investors who have historically been crucial in maintaining and influencing the price of sentiment-driven cryptocurrencies are showing signs of waning interest, as seen in the decline. These on-chain measurements are shown in the DOGE/USDT chart. The price has been having difficulty staying above the important moving averages.
That is not to mention the RSI, which indicates a reading close to 50. The neutrality of this momentum oscillator also suggests that Dogecoin is unlikely to see a volatility surge, hence the lack of interesting moves.
Significant trading volume is typically needed to validate long-term price increases. Worries about a possible collapse in DOGE’s price are heightened by the current lack of noteworthy volume.
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