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.
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.
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.
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.
