- Dogecoin transaction volume has increased by nearly 80% between April 6 and 15, while DOGE price declined.
- Retail holders and small-wallet investors accumulated DOGE in the recent price dip, but whales sold their meme coin holdings.
- DOGE on-chain metrics signal the likelihood of further correction after 3.3% losses on the daily time frame.
Dogecoin (DOGE), one of the largest meme coins in the crypto ecosystem, has noted an increase in on-chain activity alongside a price correction since the beginning of April. DOGE price, which is down 3.3% on the day, is at risk of a further drop as whales shed their token holdings.
Three on-chain metrics bode no good for DOGE
- Transaction volume climbed 80% between April 6 and April 15
DOGE transaction volume was up from $2.99 billion on April 6 to $5.36 billion on April 15. Typically, an increase in transaction volume shows that the token is relevant and there is higher user activity. However, this increase in volume has come hand in hand with a more than 13% price decline.
Transaction volume and price
- Retail investors are accumulating while whales distribute
An analysis of Santiment data for wallets holding between 1,000 to 10,000,000 DOGE tokens shows that small-wallet holders are accumulating through the recent “dip” in Dogecoin price. Wallets holding between 1,000 to 10,000; 10,000 to 100,000 and 100,000 to 1,000,000 DOGE tokens have rapidly accumulated the meme coin, while the cohort of DOGE holders with 1 million to 10 million DOGE tokens in their wallets has shed the meme coin.
Typically, whale holdings decrease near a price correction. As seen in the chart below, this cohort (holders of 1 million to 10 million DOGE) has shed their holdings ahead of price decline in DOGE, as seen on March 4 as well. If history is meant to repeat, market participants can expect a correction in DOGE price.
DOGE supply distribution
- Nearly 81% of wallets are profitable
Data from IntoTheBlock’s Global In/Out of the Money map, a tool that calculates the average cost basis of the tokens currently held by the addresses, shows that nearly 81% of wallets holding DOGE are currently profitable. Wallets holding 123.18 billion DOGE tokens worth $19.24 billion are sitting on unrealized gains. These traders are likely to take profits, increasing the likelihood of higher selling pressure on DOGE in the coming days or weeks.
While this metric is typically used to identify support and resistance levels, it also signals whether there is a high or low likelihood of profit-taking by traders.
Global In/Out of the Money
DOGE price trades at $0.1564 at the time of writing, down nearly 3.3% on the day. The meme coin is in a downward trend, ahead of Dogecoin Day on April 20, an informal holiday created by the asset’s traders in honor of the 420 meme in the community.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Trust Wallet with over 100 million users back on Google Play Store after temporary removal
Trust Wallet is a non-custodial software wallet that allows traders to send, receive, exchange and hold digital assets. Users can hold cryptocurrencies and NFTs in their Trust Wallets. The wallet disclosed its removal from Google’s application store, Play Store, early on Monday.
Maker loses 9% in past 24 hours as whales sell MKR for profits
Maker (MKR) wiped out 9% of its value in the past 24 hours. Data from crypto intelligence tracker Santiment shows that large wallet investors are taking profit on their MKR holdings, likely driving down the asset’s price.
Week Ahead: Bitcoin could surprise investors this week Premium
Two main macroeconomic events this week could attempt to sway the crypto markets. Bitcoin, which showed strength last week, has slipped into a short-term consolidation. However, a shift in momentum could soon bring forth a momentary rally for BTC and altcoins.
XRP slides to $0.50 as ETHgate controversy resurfaces, Ripple CTO debates impact on litigation
Ripple (XRP) loses all gains from the past seven days, trading at $0.50 early on Monday. XRP holders have their eyes peeled for the Securities and Exchange Commission (SEC) filing of opposition brief to Ripple’s motion to strike expert testimony.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.