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Shiba Inu-faced darling of the 2021 memecoin fever, Dogecoin (DOGE), has been shivering in the present crypto winter. Originally a symbol of retail investor excitement, DOGE has dropped over 70% from its sky-high peak, leaving its future clouded in doubt.
DOGE Feels The Crypto Frost
While the heavyweight champion of the crypto scene, Bitcoin, steals headlines with its latest wobble, memecoins like DOGE have suffered greatly. Unlike the split expert views on Bitcoin, DOGE is clearly pessimistic.
At the time of writing, the memecoin was trading at $0.132, down 5.4% up the last 24 hours but sustained a 20% loss in the last seven days, data from Coingecko shows.
Dogecoin price action in the last 30 days. Source: Coingecko
Is DOGE A Canary In The Crypto Coal Mine?
Some observers see DOGE’s challenges as a canary in the coal mine for the whole crypto industry. They claimed that if even a historically high-flying memecoin like Dogecoin cannot hang onto profits, it calls major questions about risk appetite in the crypto industry overall.
Dogecoin market cap currently at $18 billion. Chart: TradingView.com
Whales Accumulating DOGE: A Glimmer Of Hope?
For the dethroned meme monarch, nevertheless, a faint hope flickers. On-chain data points to possible accumulation by affluent investors based on a spike in big wallet purchases of DOGE. This “contrarian” behavior might indicate that some whales watch Dogecoin derivatives using Coinglass or other platforms and think the coin is underpriced and ready for a rebound.
Source: Coinglass
Popular bitcoin data source Coinglass provides insights into elements possibly impacting the decisions of the whales. These investors might find a chance to purchase DOGE at a discount by examining Coinglass’s indicators such open interest, funding rates, and liquidations.
In a related vein, well-known blockchain tracker Whale Alert has claimed that a DOGE whale set two significant transactions in one day. In the first transaction, some 150,000,000 Dogecoins were moved; in the second, 76,316,694 DOGE were transferred for a total of roughly 226 million DOGE. The meme coin was valued in fiat money at the time around $40 million.
🚨 150,000,000 #DOGE (21,281,922 USD) transferred from #Robinhood to unknown wallethttps://t.co/7U1CEfr2ZT
— Whale Alert (@whale_alert) April 29, 2024
Can Dogecoin Thaw The Crypto Winter?
For DOGE, the next weeks will prove vital. The DOGE rise may be sparked by the restoration of favorable social media sentiment combined with ongoing accumulation by whales maybe employing Coinglass for market analysis. DOGE’s summer could be spent shivering in the doghouse, too, should the downturn in the larger market continue.
Featured image from Pixabay, chart from TradingView
