Large DOGE Transaction Volume Crashes: Are Dogecoin Whales Selling?

Price action and on-chain data suggest Dogecoin traders are starting to take some profit after a week of intense price rally.

Dogecoin traders appear to be cashing out following an intense week of price rally.

On-chain data reveals a marked decrease in the volume of large transactions among Dogecoin holders, indicating a possible shift in the market sentiment.

According to IntoTheBlock’s ‘Large Transactions Volume in USD’ metric, the value of large Dogecoin transactions dropped by 36% over the past 24 hours. This metric tracks the collective value of transactions with a value of $100,000 or greater.

At the time of writing, the value of large DOGE transactions stands at $3.46 billion, showing a 36% decline from the $5.38 billion volume registered on November 6. This shift in trend is particularly noteworthy considering the fact that the trading volume had been on an uptrend since November 2.

Furthermore, IntoTheBlock’s ‘Large Transactions Volume’ metric shows that 17.76 billion DOGE tokens were moved in 2.72 transactions in the past 24 hours. This also represents a 36% reduction in the 27.7 billion tokens moved in 4,150 transactions on November 6.

Such a steep decline in both transaction volume and the number of large trades may reflect a shift in market sentiment as whales appear to exercise caution. However, the decrease in large transaction activity doesn’t necessarily indicate a widespread sell-off by big holders. It may simply reflect a pause in significant buying as whales hold back on adding to their positions in anticipation of a pullback.

That said, price data suggests some holders are indeed selling. At the time of writing, Dogecoin is trading at $0.1984 and it could soon attempt another push above the $0.20 mark. On the other hand, a breakdown of the momentum could see Dogecoin retesting support at $0.187.