Dogecoin Price Analysis: Whale Sell-Off and 22% Downside Risk

Dogecoin Price Analysis: The Bitcoin price struggle to break past $65,000 psychological resistance is accelerating the overhead for major altcoins including Dogecoin. In the daily chart, the DOGE price projects two long rejection candles at the $0.17 mark indicating sellers are aggressively defending the higher levels. This reversal sign at the monthly resistance trendline indicates a prolonged correction period for the largest meme cryptocurrency.

Also Read: Dogecoin Developer Flags Privacy Concerns In Coinbase Ecosystem

Dogecoin Decline as Whale Moves 400 Million DOGE to Robinhood

Over the past five weeks, the Dogecoin price has witnessed a steady correction trend under the influence of a downsloping trendline. The resistance trendline has plunged the DOGE value from $0.228 to the current trading price of $0.156 registering a 33% loss.

The coin price reverted thrice from this resistance indicating the traders continue to sell this asset at a bullish bounce, a key behavior in an established downtrend.

In a notable on-chain movement reported by Whale Alert, a massive transaction of 400 million DOGE, valued at approximately USD 62.8 million, was transferred from an unknown wallet to the popular trading platform Robinhood. The transfer may signal the whale could be preparing to sell, which might increase supply pressure on DOGE.

🚨 🚨 🚨 400,000,000 #DOGE (62,825,933 USD) transferred from unknown wallet to #Robinhoodhttps://t.co/Ghy0dGLZky

— Whale Alert (@whale_alert) May 7, 2024

Thus, a potential reversal may plummet the DOGE coin by 22% and hit the multi-month support of $0.122.

Also Read: Bitcoin & ETH Records $251M Outflow Last Week, But There’s A Catch

Dogecoin Price Analysis: Outpacing Rivals in Wallet Expansion

Altcoin Daily’s recent analysis, using Santiment data, reveals significant trends in cryptocurrency adoption. Bitcoin maintains a robust lead with a record 53.85 million non-empty wallets. Notably, Toncoin’s network has shown the fastest growth in wallet numbers, suggesting rising investor interest. 

Dogecoin outpaces XRP & ADA in 6 month wallet growth pic.twitter.com/HpO8rQxNw2

— Altcoin Daily (@AltcoinDailyio) May 4, 2024

Dogecoin also stands out, outpacing XRP and ADA in wallet growth over the past six months. This development might reflect a revival of interest in Dogecoin, possibly spurred by various social media endorsements and its community’s vibrant activities.

Thus, a broader trend for Dogecoin remains bullish and a potential breakout from the overhead will signal the end of the correction trend.

Technical Indicator

• BB Indicator: A flattish trend in the Bollinger band indicator reflects no clear dominance from buyers or sellers toward DOGE.
• Average Directional Index: A falling ADX slope at 23% indicates the prevailing bearish momentum is weakening with a recent bounce.