Dogecoin’s price trajectory is currently influenced significantly by its on-chain data. While the meme coin remains popular, these metrics offer crucial insights that might predict whether DOGE’s price will rise or fall. The price of DOGE is expected to be affected by three key on-chain signals, which we will examine here:
- High Transaction Volume:
- One of the most informative on-chain indicators is the large volume of transactions. In the last 24 hours, a total of 983 large transactions amounting to 5.56 billion DOGE were executed on Dogecoin’s
Despite this volume being substantial, it falls short of the seven-day high of 10.09 billion DOGE. The decrease in large transaction volume suggests a decline in whale activity, which could be a bearish indicator for DOGE. With reduced whale participation, the market might become less liquid and more volatile, often leading to significant price fluctuations - Concentration Among Major
- Holders: The percentage of DOGE held by top holders, currently at 62%, is another important metric. This measure indicates that a large portion of the total supply is controlled by a small number of wallets. High concentration among major holders can have two implications: if these holders are long-term investors, it might bolster price stability. However, if they decide to sell large quantities, it could also lead to sharp price movements. The current degree of concentration implies that DOGE’s price is highly susceptible to the decisions of a few strong holders.
- Net Flows and Network Activity:
- Finally, exchange net flows and network activity provide additional insights into DOGE’s price potential. Although inflows indicate some interest in DOGE, network growth appears to be declining, suggesting fewer people are joining. This could lead to a stagnation in user adoption, reducing DOGE’s long-term growth potential and possibly causing a price drop.
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