Dogecoin receives its first significant purchases in December, but does this indicate a rally? – Bit News Today
- The $1 million Dogecoin whale transaction was the largest since November came to an end.
- Demand for the memecoin persisted in an almost glum manner.
In December 2022, Dogecoin [DOGE] transactions over $1 million unexpectedly reached a significant number for the first time. Santiment claims that at the time of writing, there were 37 whale transactions involving the aforementioned amount in DOGE.
As a result, these wealthy investors found DOGE to be sufficiently alluring after the memecoin’s performance since November 30 remained dismal. However, it wasn’t the only notable event that shocked DOGE.
Similar to the transactions in the seven-figure range, the number of transactions in the $100,000 range increased to 179. However, before the most recent update, whales had completed a number of transactions.
Belief is still not very strong
The action came after a decline in the positive sentiment. Santiment revealed that investors chose to raise doubts as the positive sentiment fell to 357, despite the possibility that the whales could have created an upside.
However, this drop was insufficient to cause a spike in the negative. Looking at the on-chain platform’s report, DOGE’s negative sentiment had decreased to 234.
The data mentioned above suggested that investors’ views on Dogecoin were more evenly distributed. As a result, opinions on the memecoin were hesitant to be settled.
In addition, there was less talk about the coin’s potential to replace Twitter’s current payment system. The DOGE community was sceptical at the time of writing because the microblogging platform had not made its payment plans publicly known.
Further research revealed that Dogecoin’s 24-hour active addresses remained essentially at 100,000. There were exactly 114,000 active addresses as of the time of publication. This suggested that investor participation in various DOGE transactions was at a commensurate, even level since it was a slight increase from the previous day.
Dogecoin reversed its earlier decline based on its one-day circulation. It lit up to 1.3 billion, which indicated that a significant amount of DOGE had been transferred five or more times in the previous day.
Dogecoin is deviating from its gains
DOGE was content to be the source of short-term unreliability. The 30-day Market Value to Realized Value (MVRV) ratio provided additional evidence of this uncertainty. The MVRV ratio indicated that the short-term outlook showed realized losses in already-depleted portfolios.
At -0.765%, it indicated that investors who purchased DOGE after November 27 and continued to hold must have experienced a profit reversal. This meant that a large portion of the supply had not broken even. As a result, there was only a minor amount of unrealized profit and deficient demand forces.