Dogecoin whales were apparently tempted to profit at higher price levels.
Dogecoin whales have been on the move as DOGE price action calms down. With bulls on the back burner, where could Dogecoin price head?
Dogecoin (DOGE), has been in the spotlight for over 10 days as price action posted gains of close to 140%. DOGE’s price rallied amid the hype over Elon Musk’s $44 billion acquisition of Twitter.
While the DOGE rally was largely driven by Musk and Twitter, amid negative sentiment from Twitter layoffs and other news, Dogecoin price was trading in the red. On November 4, the price of DOGE was trading at $0.1271, or 2.86% lower on the day.
And when news broke that Twitter had halted its plans to build a crypto wallet, the price of DOGE sank further, dropping almost 10%.
Social Euphoria Fades
The Dogecoin price peaked around the $0.158 level on Nov 1, after which the price started reaching lower levels. Notably, social volumes and weighted social sentiment also peaked at the same time.
With price noticing a pullback, social volumes and weighted social sentiment returned to lower levels, presenting diminishing interest from participants.
DOGE trading volumes diverged similarly, peaking just as prices were beginning to rise. However, waning interest from the retail side could be detected in lower trading volumes.
Additionally, the transaction count for DOGE also featured a bearish divergence that fell to near-historic levels. A low transaction count presented how fewer successful transactions were occurring on the Blockchain.
Dogecoin Whales Running Away?
As the price of DOGE soared to a six-month high, Dogecoin whales were apparently tempted to make a profit. A look at the supply of DOGE held by the address balance showed that most addresses that held a large number of DOGE coins had reduced their holdings.
Addresses holding between 1,000 and 10,000 coins have reduced their holdings considerably, from 1.22% to 1.20%.
Furthermore, the whale watch data showed that 40,501,820 DOGE worth more than $5 million was transferred from an unknown wallet to Binance. Generally, coins moving from wallets to exchanges signify an attempt to liquidate and make a profit.
With the DOGE whales acting skeptical, the key price level to watch would be the 0.113 mark. The money-in and money-out indicator data around IntoTheBlock price suggested that the 0.113 level could act as solid support for DOGE, but before that, there is not much support for the bulls.
At the $0.113 level, 11,400 addresses hold around 9.09 billion DOGE. However, on bearish invalidation, if the price improves, the $0.127 level may act as the next resistance where 40,870 addresses hold 2.4 billion DOGE.
By Audy Castaneda
