- There has been a significant decline in whale holdings during this week.
- Some in the market were hoping for a quick recovery to $0.20.
Dogecoin (DOGE), the world’s largest memecoin, is up 2.11% in the last 24 hours of trading, raising hopes of reversing the corrective actions seen over the past week.
The dog-themed token has plummeted 14% in value over the past seven days, matching a broader decline in Ethereum (ETH)-based memecoins, according to data from CoinMarketCap.
At the time of writing, it was trading at $0.18 and market participants were hoping for a quick recovery above $0.20.
The negative price action was followed by massive selling by large holders of the coin. AMBCrypto’s analysis of Santiment data shows that the number of wallets holding between 10 and 1 million coins has decreased significantly this week.
The decline in holdings is accompanied by an increase in trading above $100,000, confirming that whales are dumping DOGE in large quantities.
Source: Santiment
However, some in the market were hoping for a quick rebound from this downturn. all cryptocurrency trader We shared analysis highlighting DOGE’s resilience during the adjustment period. They also seemed confident of a bounce to $0.20 in the coming days.
Traders’ optimism may be unfounded. AMBCrypto has seen a sharp increase in the number of whale buy positions on Binance using Hyblock Capital, suggesting bullish expectations from DOGE.
Source: Hiblock Capital
What this means is that the selling we discussed earlier can liquidate an excessively leveraged buy.
To better understand DOGE’s next move, AMBCrypto examined several key technical indicators via TradingView.
The Relative Strength Index (RSI) has risen from the neutral 50 level and is generally interpreted as a bullish signal.
Realistic or not, here is DOGE’s BTC market cap:
However, On Balance Volume (OBV) has made lower highs and lower lows during the week. The similarity to DOGE’s price trend indicates that the downtrend is likely to continue.
The Moving Average Convergence Divergence (MACD) line has crossed below the signal line, suggesting that DOGE may decline further.
Source: Trading View