Dogecoin Price at Risk as Whales Cut Trading by 55%: Will Cardano overtake DOGE ?

Dogecoin price fell to a new 10-day bottom of $0.11 on Wednesday July 3, as institutional investors switch focus towards low-cap and mid-range memecoins. Here’s how DOGE price could react in the weeks ahead.

DOGE price tumbles to 10-Day Low

After a relatively strong end to June 2024, Dogecoin bulls have failed to sustain the upward momentum. On July 3 2024, DOGE shed more than $100 million from its market capitalization, accounting for over 6% in losses within the daily timeframe.

Despite the intense market volatility in June 2024, DOGE managed to maintain its place on the top 10 crypto market rankings. Per Coinmarketcap data, DOGE has   a $17 billion market capitalization as of July 3. This places Dogecoin in 9th position ahead of Cardano (ADA) which has a $14 billion market valuation.

The latest DOGE price downswing sparks fear that bears could further tightened their hold on the memecoin markets, and see Cardano overtake DOGE as the month unfolds.

More so, new emerging memecoins, and politics-themed tokens have dawn investor interest and media attention away from mega cap assets like DOGE and memecoin in recent weeks.

The chart above shows that DOGE price peaked at $0.163 on June 3, as bulls attempted to reclaim the $0.20 resistance level. But since then, the bears have flipped the tide and forced another 28% Dogecoin price downtrend over the last 30 trading days.

Zooming out, Dogecoin price falling to a 10-day low of $0.11 on Wednesday, July 3, means that bears remain in control of the short-term market momentum.

More on-chain data shows that whale investors recent in-activity could exacerbate the DOGE price decline further the weeks ahead.

Whale Investors Cut Dogecoin Transactions by 55%

As hinted by the major news headlines in the past few days, DOGE price decline below the $0.12 support mirrors the intense volatility observed in the broader crypto markets.

However, an in-depth inquest into Dogecoin’s underlying on-chain trends shows that whale investor cutting back on their DOGE trading activity has emerged a critical factor behind the ongoing price downtrend as well.

IntoTheBlock’s Large Transactions Count data tracks the total number of individual transactions exceeding $100,000 on any given trading day. This serves as a proxy for measuring the spate of whales’ trading activity within a cryptocurrency network.

As seen above, the Dogecoin network recorded a total of 1,890 large transactions exceeding $100,000 at close of June 7. But worryingly, the number of the Dogecoin whale transactions has been in a steep decline since then.

The latest data shows that DOGE whales only conducted 850 transactions on Tuesday July 2, reflecting a 55% decline from last month’s peak values recorded on June 7.

For a number of reasons, whale investors cutting down on their trading activity  may have a negative impact of DOGE price action in the week ahead.

Firstly, whale transactions provide much-needed liquidity to any cryptocurrency markets. Hence, panic sellers now have less-liquidity available to conduct high-volume sell-offs without causing major price dips.

In essence, the whale transactions dropping of by 55% in the past month now puts DOGE prices may experience further downswings towards $0.10 in the days ahead. This could put Dogecoin price at risk of losing its place on the crypto ranking to Cardano as July 2024 unfolds.