Dogecoin remains one of the leading cryptocurrencies in the market. However, similar to the broader market, DOGE’s value has dropped by more than 20% over the past few weeks.
Whale Transactions on Dogecoin Increases
Recent data have shown that whale transactions on the Dogecoin have increased over the past week. The large transactions on the blockchain have gone up by more than 148% in the last few days.
The rally in large transactions comes after Tesla CEO Elon Musk announced that the electric vehicle manufacturer would accept Dogecoin payments for merch. This led whales to move huge amounts of money to DOGE in anticipation of a possible rally.
The whale transactions usually involve amounts above $100,000. The whales might be expecting that the recent Musk announcement could spur a rally in the cryptocurrency. Furthermore, a DOGE developer recently announced that they managed to create the first nonfungible token (NFT) on the Dogecoin blockchain and posted the transaction details of the minted token.
DOGE Continues to Underperform
The recent increase in whale transactions on the Dogecoin network has not helped push the coin’s price higher in recent weeks. Over the past month, Dogecoin has lost more than 20% of its value and is no longer one of the top ten cryptocurrencies by market cap.
DOGE’s technical indicators show that the cryptocurrency is currently struggling. The MACD line is below the neutral zone, indicating that the bearish trend is currently strong. Meanwhile, the RSI of 41 shows that DOGE is still battling to get out of the oversold region. DOGE is trading way below its 100-day moving average of $0.23 per coin.
DOGE has added more than 3% to its value over the past 24 hours as the broader market slowly recovers. If the current market condition persists, DOGE’s price could rally higher over the coming hours and top the $0.20 level. Unless there is an extended bullish performance, the $0.25 resistance level could cap further upward movement in the short term.