On-chain data shows whale-related activity on the Dogecoin blockchain has registered a sharp 600% increase over the past month.
Dogecoin Whale Transactions Have Exploded In The Last Month
According to data from the market intelligence platform IntoTheBlock, DOGE whales have become quite active recently. The on-chain indicator of interest here is the Transaction Count of transfers on the Dogecoin blockchain with a value of at least $1 million.
Generally, only the whale entities are capable of moving such large amounts with single transactions, so these transactions are attributed to involving these humongous investors.
As such, the total number of transactions taking place on the network every day that are of a size falling in this range can provide us with hints about the behavior of the whales.
When the value of the Transaction Count of moves of this size is high, the whales actively participate in the network. Such a trend implies that interest around the memecoin may be high among these large traders.
On the other hand, low values of the indicator suggest not many large transactions are happening on the blockchain, a potential indication that the whales aren’t paying attention to the cryptocurrency.
Now, here is a chart that shows the trend in the Dogecoin Transaction Count for the whales over the past month:
The value of the metric seems to have been going up in recent days | Source: IntoTheBlock on X
As the above graph shows, this Dogecoin indicator has recently registered a sharp uptrend. “The number of DOGE transactions larger than $1 million increased by more than 600% in the last 30 days!” notes IntoTheBlock.
The analytics firm has also shared a zoomed-out view of the chart for the same metric, which puts into perspective the scale of the recent DOGE whale activity.
The trend in the whale Transaction Count over the past few years | Source: IntoTheBlock on X
It would appear that the recent levels of the Transaction Count of the Dogecoin whales have been the highest that the network has witnessed since May 2021, when DOGE hit its top.
What does the high whale activity mean for the memecoin’s price? Generally, it’s hard to say anything about a price outcome based on the Transaction Count of these humongous entities alone, given that both selling and buying transfers count equally in the metric.
What the indicator’s trend can say, though, is whether the asset is likely to see more volatility in the near future. A large number of whale transactions means a significant shift of volume in the market, which can naturally produce some noticeable fluctuations in the price.
As Dogecoin has been going through high whale activity recently, it may see more volatile price action soon, should whales continue to remain active. However, the direction of this volatility can theoretically take the memecoin in either direction.
DOGE Price
When writing, Dogecoin is floating around the $0.15 mark, down more than 6% over the past week.
Looks like the price of the memecoin has retraced some of its recovery | Source: DOGEUSD on TradingView
Featured image from Kanchanara on Unsplash.com, IntoTheBlock.com, chart from TradingView.com