DOGEBTC Touches Yearly-Lows
In the last four hours, there’s been a notable shift in Dogecoin (DOGE) trading sentiment. Sellers have been actively closing positions, especially after DOGE trapped bears around a low of $0.075. Coinglass data highlights a liquidation of $108K in Dogecoin, with $107K from short positions.
However, Dogecoin’s rise may face challenges due to its inability to align with the market’s volatility. TradingView data shows that the DOGEBTC ratio hit a yearly low at 0.00000182. Additionally, there’s been notable selling pressure from whales, which is slowing the recovery momentum.
Whales Sell Off DOGE Holdings
Large transactions involving DOGE whales were observed today. Over 635 million tokens (valued $52 million) were moved to Binance and Robinhood. A report by Whale Alert mentioned a recent transfer via Binance, moving 300 million DOGE from an unknown wallet to the exchange, amounting to $24.62 million. Another major transaction, occurring eight hours earlier, involved moving 151.68 million DOGE (worth $12.49 million) from Robinhood to an undisclosed wallet.
Prior to this, two significant transactions were directed towards Robinhood from an unidentified wallet, transferring 102.27 million and 82.08 million DOGE, valued at $8.40 million and $6.74 million, respectively.
Most of these transactions were towards a crypto exchange, indicating that whales might be offloading their holdings during the price dip. This suggests a potential build-up of stronger resistance for Dogecoin going forward.
Potential Hurdles for Dogecoin Recovery
Following the recent market decline, Dogecoin has experienced a slight rebound; however, whales continue to sell their holdings. This recovery, however, faces potential hurdles as DOGE’s value reaches its annual low in comparison to Bitcoin. This indicates a significant decline in the Dogecoin volatility relative to its counterparts. Such conditions could trigger addresses currently in profit to begin liquidations, potentially leading to an increase in selling pressure.
Major Transactions Shake DOGE Market
Large transactions involving DOGE whales moving significant amounts of tokens have shaken the Dogecoin market. These transactions, worth millions of dollars, have been directed towards exchanges like Binance and Robinhood. The movement of such substantial holdings suggests that whales may be taking advantage of the price dip to sell off their DOGE holdings, adding to the selling pressure in the market.
What’s Next For DOGE Price?
Dogecoin witnessed its support level at $0.075, suggesting that buyers stepped in and rebounded the price from that level. This resulted in the formation of a bear trap; however, they aim to defend a surge above the EMA20 trend line. As of writing, DOGE price trades at $0.0835, surging over 1.1% from yesterday’s rate.
Currently, bulls are attempting to hold the recovery rally, but these efforts are expected to encounter significant resistance at the 20-day Exponential Moving Average (EMA) and also around $0.093.
Should Dogecoin’s price reverse from this level, its price could potentially drop to the $0.07 mark. While this price point may attract some buying interest, a continued bearish trend could send the price down further to $0.061.
For a bullish reversal, it’s crucial for the bulls to not only push the price but also hold it above the resistance zone ranging from $0.093 to $0.11. Achieving this would indicate the beginning of a new upward trend, potentially leading the price towards $0.15.
Analyst comment
Neutral news.
As an analyst, it is expected that the Dogecoin market will face challenges in its recovery due to its inability to align with market volatility. The selling pressure from whales moving significant amounts of tokens suggest a potential build-up of stronger resistance for Dogecoin. The recovery rally may encounter resistance at the 20-day EMA and around $0.093. A drop to $0.07 is possible, while a bullish reversal would require pushing and holding the price above the resistance zone from $0.093 to $0.11, potentially leading to a price increase towards $0.15.
