The crypto market is starting to cool off, especially after the heat of last week's bullishness.
One of the best-performing cryptocurrencies on the market in the last 10 days is Dogecoin. In under 7 days, the dog-themed cryptocurrency doubled, gaining as much as 105% compared to most other cryptocurrencies on the market.
At the time of writing, the bullish momentum on Dogecoin has reduced, and the cryptocurrency appears to be consolidating. Investors and traders have begun to wonder what the dog-themed cryptocurrency has in store for its investors.
Is this consolidation merely a retracement before an even more bullish rise to the upside, or have Dogecoin's bulls exhausted themselves and now lack the ability or strength to push the cryptocurrency price further upwards?
A valuable source of insight may be this tweet from the whale activity monitoring platform's Twitter account,whale-alert. Earlier in the week, the whale activity monitoring platform drew attention to a total of 41,096,902 DOGE, totaling $5,553,336, being transferred over five separate transactions from an unknown address into Binance (plus a $0.62 network fee).
According to the transaction details, 384.11 DOGE ($51.89) was transferred over four transactions before the bulk of the 41,096,523 DOGE ($5,553,284).
Historically, whales moving crypto into exchanges has become a popular on-chain metric. When whales deposit large amounts of crypto into exchanges, it is generally believed that such an investor is planning to sell their holdings.
Such a big short trade from a whale is guaranteed to tilt the market a little in the bearish direction (if the whale indeed sells the coins off).
After Dogecoin's inception as a memecoin or a joke about bitcoin's popularity in 2013, not many people took it seriously.
However, the brave enough to see the memecoin as more than a joke have profited greatly from it, with some even becoming millionaires.
According to data collected from the blockchain tracking platform bitinfocharts.com, Dogecoin has more than 1000 millionaires.
According to bitinfocharts.com, this figure is also more than double what it was two months ago, in September.
The bullish momentum on DOGE appears to be cooling. After almost doubling in price last week and hitting a high of about 0.158, the cryptocurrency has now reversed into what seems like a retest of the $0.11 support.
At the time of writing, the cryptocurrency is worth $0.1315 and has fallen 11.94% today alone.
On the daily timeframe, the MACD indicates that the bulls may still be in control over a long-term perspective. However, the cryptocurrency is high above its 100, 50, and 20 daily moving averages, indicating that a retest may be possible.
The daily RSI also shows overbought conditions and appears nearing a correction back to the neutral zone.
Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.