Dogecoin's on-chain data is revealing a concerning trend: larger investors, often referred to as 'whales', are gradually stepping back from the meme-inspired cryptocurrency. This shift in behavior among significant holders raises concerns about the future trajectory of DOGE's value, especially in the absence of their support. Recent data points to a notable reduction in the number of large transactions, signaling potential challenges ahead for Dogecoin's stability and market sentiment.

As of June 2, the number of transactions involving Dogecoin stood at a mere 718, a stark decline from the seven-day high of 54,000 recorded on May 27. This substantial decrease in whale activity underscores a shift in investor behavior that could significantly impact Dogecoin's value and overall market dynamics. A similar pattern emerges when examining the volume of large transactions, with a significant drop observed from a seven-day high of 8.65 billion DOGE on May 29 to 4.6 billion DOGE by June 2. This diminishing interest from large investors, who have historically wielded considerable influence over sentiment-driven cryptocurrencies, raises concerns about Dogecoin's future trajectory.

The impact of this decline in whale activity is palpable when analyzing on-chain metrics, as reflected in the DOGE/USDT chart. Dogecoin's price struggles to maintain positions above crucial moving averages, while the Relative Strength Index (RSI) indicates a reading close to 50, signaling a state of neutrality in momentum. Such conditions suggest a lack of imminent volatility and significant price movements. Moreover, the current absence of substantial trading volume further compounds concerns regarding the potential for a downturn in DOGE's price.

The diminishing presence of whales poses a significant threat to Dogecoin's price stability. Without their influential support, the cryptocurrency may face continued downward pressure on its value. The prevailing trend in on-chain data paints a cautious outlook for DOGE's price trajectory in the foreseeable future.

In summary, Dogecoin confronts the prospect of price pressure as larger investors, or 'whales', withdraw from the meme-inspired cryptocurrency. The observed decline in whale activity, as indicated by on-chain data, underscores growing challenges for Dogecoin's stability and market sentiment. With significant trading volume lacking and the RSI signaling neutrality, concerns about a potential downturn in DOGE's price persist.