Highlights
- The Dogecoin price is in steady decline, with hesitation seen in derivatives trading volume also which is down to $3.3 Billion.
- Analysts highlight whale activity has plummeted nearly 88% since mid-November 2024, signaling a lack of large investor’s interest in the market.
- Analyst Raoul Pal predicts Dogecoin could surpass Bitcoin, and Bloomberg analysts forecast a 75% chance of a Dogecoin ETF approval by 2025, but declining whale activity raises concerns.
Recently, analyst Raoul Pal has stirred up discussions with his bold prediction that Dogecoin (DOGE) could potentially surpass Bitcoin. He suggested that Dogecoin price might become the hardest money ever created.
Adding to the excitement, Bloomberg ETF analysts forecast a 75% chance of a Dogecoin ETF approval by 2025. The SEC has also officially acknowledged Grayscale’s filings for both XRP and Dogecoin ETFs.
Despite this optimism, the Dogecoin price has been on a steady decline. The sentiment in the spot market is mirrored in the derivatives market, where hesitation is evident.
Currently, the open interest-weighted funding rates are decreasing, and the trading volume for Dogecoin crypto derivatives has dropped to $3.3 Billion, down from a peak of $60.11 Biliion in November 2024.
Other derivative metrics, such as the decline in open interest, indicate a waning confidence among traders, particularly given the uncertain trajectory of the Dogecoin crypto price. Also, whale activity has also diminished, with many experts predicting a bearish trend ahead.
Keep reading to find out more about whether Dogecoin price could rise or continue to fall.
88% Decline in Whale Activity Caused Dogecoin Price Deterioration
Recently, Whale activity in Dogecoin crypto has decreased significantly, with large transactions plummeting nearly 88% since mid-November 2024.
In the latter half of 2024, whale activity peaked, but by mid-November, this activity began to decline sharply. Which intensified in January and February 2025, as large transactions had nearly vanished, signaling a clear bearish shift in market sentiment.
Moreover, market analyst Ali Martinez pointed out this drastic reduction in active whales. He dathat this may be due to several large institutional investors and major holders either decreasing or reallocating their investments.
This metric is very essential, as it shows the large investor’s movement. Traditionally, Whales have provided liquidity and stability to the market, and their reduction could lead to weaker support, resulting in a more volatile, retail-driven market.
On the contrary, if the broader cryptocurrency market starts to show signs of recovery, traders may return in greater numbers. But, until a clear trend emerges, the outlook for Dogecoin price remains largely uncertain.
Analyst Says Dogecoin Price to Fall More?
Amid the drop in Whale activity, the volatility in the Dogecoin price has also significantly diminished. With fewer transactions from large holders, the price has begun to experience more corrections.
Currently, Dogecoin is oscillating within a narrow range of $0.24 to $0.28, reflecting a lack of clear trends.
This sideways price action indicates indecision in the market, with neither buyers nor sellers taking control.
Moreover, market analyst Best_Analysts has weighed in on the Dogecoin price viewpoint, he is openly expressing a bearish sentiment. The combination of weak whale activity and diminishing market support raises the risk of further declines in the DOGE price.
According to the analyst, critical support levels for Dogecoin crypto are at $0.22, with a stronger support zone between $0.176 and $0.18. If DOGE price breaks below these levels, additional losses could ensue, exacerbating the market’s current struggles.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
