Dogecoin, the leading memecoin by market capitalization and ranked #8 among all crypto assets, experienced a 5% decline in value today following a notable 29% surge last week.
Despite its prominent position in the market, Dogecoin’s recent performance has been influenced by several factors.
One significant factor contributing to Dogecoin’s recent movements is the activity of major dormant whales who have been moving large amounts of DOGE back into circulation. This movement of funds has added volatility to the market and impacted the price action of Dogecoin.
🐳 #Dogecoin is up another +10% today, and +29% this week. The top #memecoin by market cap (#8 market cap #crypto asset overall) is being powered by major dormant whales moving $DOGE back into circulation, and a lack of #FOMO that would normally form tops. https://t.co/KKxqe4SBCm pic.twitter.com/Mb8YF71iIq
— Santiment (@santimentfeed) March 31, 2024
Additionally, there appears to be a lack of fear of missing out (FOMO) sentiment typically associated with market tops, which has hindered Dogecoin’s ability to sustain its recent highs.
This absence of FOMO has prevented Dogecoin from breaching the $0.22 mark again, despite its previous attempts.
Investors Lose Interest In Dogecoin
Insights from Santiment data further reveal that the number of Dogecoin wallets holding greater than zero coins has seen only a marginal increase of 0.21% in the past two weeks. This suggests that memecoins, including Dogecoin, are not being taken seriously by investors, leading to subdued market activity.
Furthermore, there has been a noticeable reduction in the average age of Dogecoin investments sitting within the same wallet. Over the span of just five weeks, the average age of Dogecoin investments has decreased from 510 days to 416 days. This trend indicates increased turnover and movement of Dogecoin holdings within the market.
As Dogecoin navigates through these dynamics, investors remain watchful of further developments and potential shifts in market sentiment that could impact its trajectory in the coming weeks.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.