Dogecoin (DOGE) May Experience a 20% Price Decline if This Occurs

Dogecoin (DOGE), the popular and largest crypto-meme coin in the world, is expected to continue its downward trend due to whale activity and price movement indicating a bearish signal.

Whale Dumped 146.6 Million DOGE
Recently, Whale Alert, a tracker for whale transactions, announced on X (formerly Twitter) that an unidentified wallet had transferred a significant amount of 146.6 million DOGE, worth $56.5 million, to the cryptocurrency exchange Robinhood.

61,160,251 #DOGE (23,493,325 USD) transferred from unknown wallet to #Robinhood https://t.co/tVZiVALBCQ — Whale Alert (@whale_alert) December 10, 2024

In the cryptocurrency world, the transfer of assets from wallets to exchanges is often seen as a negative sign. It indicates that these assets are being transferred with the intention of being sold, which can create selling pressure and lead to price declines.

Dogecoin (DOGE) Technical Analysis and Future Levels
According to expert technical analysis, DOGE is showing a bearish trend as it has formed an inverted hammer candlestick pattern at the crucial resistance level of $0.42. Additionally, it has also started to show downward momentum, partially confirming this bearishness.


Source: Trading View

Based on recent price movement and historical momentum, if DOGE remains below the $0.42 level, there is a strong possibility that it could decline by 20% and reach $0.35 in the coming days. However, this bearish scenario is only valid as long as DOGE continues to trade below the $0.42 level, otherwise, it may not materialize.

Despite this bearish outlook, the 200-day Exponential Moving Average (EMA) on a daily time frame indicates that DOGE is in an uptrend.

Traders’ Bearish Outlook
Furthermore, this bearish outlook is supported by on-chain analytics firm Coinglass. Data from DOGE’s long/short ratio indicates that short sellers currently have the upper hand.


Source: Coinglass

At present, this ratio stands at 0.78, which is a record low since the beginning of November 2024. Additionally, 56% of top traders currently hold short positions, while 44% hold long positions.

Tags: Crypto news, Price Analysis

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