Dogecoin Whale Transactions Drop Below $100K, Indicating Market Shift

February 8, 2025 by Bena Ilyas

• Dogecoin whale transactions above $100K fell to 125 from 400, signaling a major market shift.

• DOGE’s price dropped from $0.15 to $0.135, while trading volume declined 10% to $2.07 billion.

• Whale accumulation suggests potential reversal, but DOGE must break the a$0.28 resistance for bullish confirmation.

On February 7, 2025, Santiment reported a sharp decline in Dogecoin (DOGE) whale transactions, with large transfers above $100K plummeting to less than a third of early November 2024’s levels. Data indicates that the week ending February 6, 2025, recorded only 125 such transactions, down from 400 in November.

The drop coincides with a 10% decline in DOGE’s trading volume, falling from $2.3 billion to $2.07 billion over the same period. DOGE’s price also dipped from $0.15 on November 5, 2024, to $0.135 by February 6, 2025. Analysts suggest a spike in whale activity could indicate renewed accumulation, potentially impacting price trends. 

Whale Accumulation and Market Sentiment

Despite declining transactions, whales have continued accumulating Dogecoin, suggesting potential for a price reversal. On-chain data shows that whale wallets have increased their holdings, often a precursor to upward momentum. The price decline of approximately 2.6% over 24 hours aligns with this trend, indicating possible strategic accumulation by larger investors.

Historical data suggests whale accumulation at lower prices can signal an impending rally. However, broader economic factors and liquidity concerns persist, limiting the immediate upside. While Dogecoin’s price briefly touched $0.252 in recent trading sessions, resistance remains strong, preventing a decisive breakout toward higher levels.

Dogecoin Whale Transactions Drop Below $100K, Indicating Market Shift 3

Technical Analysis: Can Dogecoin Break the Downtrend?

DOGE’s four-hour chart indicates a descending channel, highlighting ongoing bearish pressure. The cryptocurrency continues trading within lower highs and lower lows, suggesting further downside unless a breakout occurs. Sellers dominate the market, compressing prices within a tightening range, limiting bullish momentum.

Whale accumulation hints at a potential bottom, but technical indicators do not confirm an imminent shift. The Money Flow Index (MFI) currently stands at 40.1, showing some buying interest but insufficient market-wide accumulation. A reading above 50 would indicate rising demand, making this a key metric to watch for future trends.

To establish a bullish reversal, DOGE must break above the descending channel’s upper trendline. Key resistance levels at $0.28 and $0.30 must be surpassed to signal renewed buying interest. If DOGE fails to hold support at $0.24, further declines could follow, potentially pushing prices to lower levels.

The implications for traders are significant. Reduced whale activity and lower trading volume suggest consolidation before the next major price move. Monitoring whale transactions is crucial, as a resurgence could indicate renewed accumulation and upward momentum. The DOGE/BTC trading pair dropped 5% in volume, further confirming a decline in market participation.

From a broader perspective, DOGE’s moving averages suggest bearish divergence. The 50-day moving average is currently $0.14, while the 200-day stands at $0.13. The Relative Strength Index (RSI) at 45 signals a neutral but slightly bearish trend. On-chain metrics show a decline in active addresses, reinforcing the notion of reduced network activity.

Read More: Dogecoin’s Historic Rallies Suggest a Massive Surge Beyond $20