Dogecoin Whales Are the Last Hope as DOGE Struggles to Recover from Recent Losses

Dogecoin (CRYPTO: DOGE) has seen a surge in large transactions, offering some hope for the meme coin amid a period of weak demand.

Here's a closer look at the key takeaways and analysis.

Dogecoin Countering Losses With Whale Activity

Despite a recent market crash that saw DOGE lose over 30% in a single day, the meme coin is showing some resilience in countering further losses. One factor contributing to this resilience is a surge in large transactions.

According to data from BitInfoCharts, transactions above $100,000 surged on Dec. 27, reaching 9,410 — the highest level since November 2021. These large transactions, often attributed to cryptocurrency whales, have played a role in stabilizing Dogecoin during periods of volatility.

If whales continue to transact at high volumes, it could provide the liquidity and market support to prevent DOGE from sliding further. However, this support needs to be sustained, especially as broader participation from investors remains weak.

For Dogecoin to fully recover, a consistent influx of smaller, high-value transactions is necessary to generate buying pressure and propel the meme coin toward its next price targets.

Investors Opting Out, Impacting Market Momentum

A key indicator highlighting the lack of strong buying pressure is the Chaikin Money Flow (CMF) for DOGE, which shows minimal inflows into the market. The CMF indicator measures the net volume of capital moving into or out of an asset over a specific period.

Dogecoin's CMF indicator is currently hovering around the neutral line, suggesting that investors are largely sitting out the market. This could be attributed to broader market conditions, such as the熊市 or waning interest in DOGE.

The lack of significant inflows indicates hesitancy among market participants. Without a noticeable uptick in buying pressure, Dogecoin's macro momentum could weaken further, leaving it reliant on whale activity and external catalysts to maintain its price levels.