Dogecoin has experienced a noticeable slowdown in whale activity, signaling potential risks for price stability. Large-holder transactions have dropped to two-month lows, suggesting institutional investors may be exiting or pausing activity, creating uncertainty for the meme coin as retail traders attempt to fill the gap. This shift could have implications for both short-term volatility and long-term bullish momentum.
Whale Inactivity Challenges Price Support and Market Stability
Recent data from Santiment shows that Dogecoin whale transactions—moves of $1 million or more—fell to just 4 in a single day, marking the lowest point since October. This is a stark contrast to the peaks of 212 daily transactions observed two months earlier, underscoring a dramatic shift in large-player behavior. While transaction counts rebounded slightly to 11 the following day, the overall activity remains subdued, limiting the market’s capacity to sustain upward momentum.
The decline in whale engagement comes as Dogecoin hovers near critical support around $0.15. Whale participation historically influences extreme price swings, as seen when prior spikes in large-holder transactions coincided with rapid drops from $0.25 to $0.18. With fewer whales moving coins, price volatility may continue without strong upward support from institutional flows.
Meanwhile, Dogecoin’s recent recovery has been largely driven by retail traders. The token posted an 11% rebound from $0.134, but analysts caution that absent sustained whale involvement, it may struggle to maintain long-term bullish trends. This cautious accumulation behavior reflects market sentiment, where traders remain alert to potential exits by large holders.