Dogecoin (DOGE) Poise For 20% Price Drop if This Happens
Dogecoin (DOGE), the popular and world’s largest cryptocurrency, is expected to continue its downward momentum as whale activity and price action show bearish signs.
Whales sell 146.6 million DOGE
recent, whale alertWhale trade tracker posted on X (formerly Twitter) that an unknown wallet had transferred 146.6 million DOGE worth $56.5 million to cryptocurrency exchange Robinhood.
In the cryptocurrency world, moving assets from a wallet to an exchange is often seen as a negative sign. This suggests that these assets are being moved with the intention of selling, which could create selling pressure and cause prices to fall.
Dogecoin (DOGE) Technical Analysis and Upcoming Levels
According to expert technical analysis, DOGE appears bearish as it formed an inverted hammer candlestick pattern at the key resistance level of $0.42. Furthermore, it has also begun to show downside momentum, which somewhat confirms this bearish sentiment.
Based on recent price action and historical price momentum, if DOGE remains at levels below $0.42, it is likely to drop 20% to $0.35 in the coming days. However, this bearish argument is only valid if: dog Trades below the $0.42 level may fail.
Despite the bearish outlook, the 200-day exponential moving average (EMA) on the daily time frame suggests it is in an uptrend.
Traders bearish outlook
However, this pessimistic outlook is further supported by on-chain analytics firm Coinglass. DOGE’s long-short ratio data shows that short sellers currently dominate.
As of press time, the ratio currently stands at 0.78, a new low since early November 2024. In addition to this, currently, 56% of the top traders hold short positions and 44% hold long positions.
