Whale activity in Dogecoin price has decreased as large transactions done in the currency have dropped to nearly 88% below the mid November 2024. These large trades tend to be increased by 2025.
In the latter half of 2024 whale activity reached its peak for this period, especially in November and December.
Yet by mid November, this activity began to fall sharply, and large transactions were ceasing to happen in volumes. Whale transactions had almost disappeared by February 2025, indicating a definite change of market sentiment.
Market analyst Ali has highlighted the fact that this severe decrease in active whales could arise from several large institutional investors and large holders decreasing or shifting their investment.
Due to this shift, there can be several Dogecoin’s price and market dynamic effects. Whales have, traditionally, been the liquidity and stability of the market. Reduction could mean weaker support to whales and price activity, a more retail driven more volatile market.
Dogecoin Price Trends and Lower Volatility
As the whales moved less volume within the market, the volatility in Dogecoin price also reduced drastically. This is further seen from the DOGE price action through the end of December 2024 to early part of 2025. During this time price movements of DOGE were observed to be high in December, 2024 and especially during the early part of January, 2025.
As transactions from white users reduced, the price started receiving more corrections and very close fluctuations. Currently, there is very little volatility and no trends that can easily be observed as Doge is oscillating within a range of $0.262 and $0.268.
This sideways price action is an indication of indecision in the market, with neither buyers nor sellers in charge. Although there has been some small price volatility during this time, it’s not too far off from what the larger swings of DOGE were experiencing earlier in 2024.
Apart from this, market analyst best_ analysts also shared his opinion about Dogecoin, as the outlook was bearish. Weak whale activity and fading market support increase the risk of further DOGE price fall.
As per the analyst Dogecoin critical support levels are $0.22 with a stronger support zone between $0.176 to $0.18.Should DOGE break below these levels, additional losses could follow, deepening the market’s current struggle.
Open Interest in Dogecoin Derivatives
Despite an apparent bearish sentiment on the spot market for DOGE, the derivatives’ market is also participating in some hesitation as well. The current trading volume of the Dogecoin derivatives is at $1.3 billion, though it has slightly dipped by 0.23% in the last 24 hours.
DOGE open interest chart
However, the decline in open interest also points to a reduction in confidence, especially with the uncertain direction of Dogecoin’s price.
If the broader cryptocurrency market begins to show signs of recovery, traders may re-enter the market in greater numbers. But until a clear trend emerges, the outlook for Dogecoin remains largely uncertain.
