Dogecoin (DOGE) Whales Selling Triggers 59% Price Drop, Worst Since March

As Dogecoin (DOGE) faces mounting selling pressure from large holders, the meme coin is experiencing a notable downturn, with its value plummeting by 59% since March. The Dogecoin (DOGE) whales selling—outflows from those holding substantial amounts of the coin—shows waning confidence in the cryptocurrency’s future. Despite the bearish outlook, some traders remain optimistic, banking on a rally that could hinge on key support levels holding firm.

Dogecoin (DOGE) Whales Selling Deepens Downward Trend

Dogecoin has been on a downward trajectory for months, with a consistent drop in price caused by declining trading volumes and diminishing market interest. The once-mighty meme coin, which gained widespread attention and celebrity endorsements, now struggles to regain its momentum. DOGE’s decline has been exacerbated by large holders, known as Dogecoin whales, offloading their positions at an alarming rate.

Data from IntoTheBlock reveals that Dogecoin (DOGE) whales selling dropped by 47% over the past three months. This decrease in netflow is a key indicator that Dogecoin (DOGE) whales are selling off their holdings. When large holders begin to sell in substantial quantities, it often leads to increased downward pressure on the coin’s price, as smaller retail investors follow suit.

Ali Martinez, a prominent cryptocurrency analyst, shared insights on this trend: “Dogecoin (DOGE) whales selling their holdings is a significant indicator of the lack of confidence in the asset. Their activity usually precedes a more extended decline, as retail investors tend to mimic these large players’ moves.”

Futures Traders Hold Their Ground Despite Whale Exodus

Despite the gloomy outlook, a subset of optimistic futures traders remains steadfast, betting on a potential turnaround for Dogecoin. These traders have continued to open long positions, expecting a price rebound. One notable metric reflecting this optimism is the meme coin’s consistently positive funding rate in perpetual futures contracts since June, currently standing at 0.01%. A positive funding rate suggests that more traders are betting on a price increase than a decline, hinting at a split in market sentiment.

According to market analyst Michael van de Poppe, this divergence between Dogecoin (DOGE) whales selling and futures traders maintaining their positions is intriguing. “Futures traders still see potential in DOGE, despite the whales’ bearish sentiment. They’re betting that the current levels represent a bottom and that the coin could rally from here,” van de Poppe noted.

Dogecoin (DOGE) Whales Selling Falling Wedge Pattern: A Glimmer of Hope?

Dogecoin’s price movements have been confined within a falling wedge pattern since March. This technical formation occurs when an asset’s price trends between two downward-sloping trend lines, with the upper line acting as resistance and the lower as support. While this pattern is typically considered bullish, as the price is expected to break through the upper resistance, the selling activity by Dogecoin (DOGE) whales has thwarted any chance of a breakout thus far.

Currently, amid the Dogecoin (DOGE) whales selling, the price of DOGE trades below its 20-day exponential moving average (EMA), a key technical indicator that reflects the coin’s short-term trend. When an asset remains below its EMA, it suggests that selling pressure is outpacing buying activity. If the Dogecoin (DOGE) whales continue selling their holdings, the coin could drop towards the lower boundary of the falling wedge, around $0.085. However, if this support level holds, it could mark a turning point for the cryptocurrency.

“Dogecoin is teetering on the edge of a crucial support level. If $0.085 holds, we could see a trend reversal,” explained crypto technical analyst Rekt Capital. “But the continued selloff by Dogecoin (DOGE) whales poses a significant threat to this support.”

Key Support: The Last Line of Defence

Despite the challenging market conditions and the relentless Dogecoin (DOGE) whales selling, there remains a possibility of a price recovery. The lower boundary of the falling wedge serves as a crucial support level, and should this hold, it may prevent Dogecoin from sliding further. A price rebound from this support level could trigger a rally towards the upper boundary of the wedge at $0.110.

Breaking past the $0.110 resistance level would be a critical milestone for Dogecoin. Such a breakout could propel the coin to as high as $0.142, representing a 40% surge from current levels. However, much depends on whether the selling pressure from Dogecoin (DOGE) whales eases, allowing the market to stabilise.

Crypto analyst Ali Martinez reiterated the importance of this support level, stating, “If Dogecoin can maintain its support at $0.085, it could stage a recovery. But with Dogecoin (DOGE) whales selling so aggressively, the market is on shaky ground.” 

Dogecoin’s Path Forward Hinges on Whale Activity

Dogecoin is facing a critical moment. As Dogecoin (DOGE) whales selling intensifies, the price is being pushed closer to key support levels. If these levels hold, there’s a chance for a reversal, but if the selling continues unchecked, DOGE may see further declines. The divergence between the pessimistic whale behaviour and the bullish futures traders highlights the uncertainty in the market.

As the cryptocurrency world watches closely, the future of Dogecoin could depend on whether its largest holders regain confidence or continue their exodus from the market.