Dogecoin Price Analysis: Whale Selling Raises Risk of Sub-$0.1 Levels

Dogecoin Price Analysis: On Wednesday, the crypto market showcased tamed volatility as Bitcoin stabilized above the $65000 level with a neutral candle. Despite this stability, the remnants of an earlier week’s sell-off still dampened momentum in altcoins, particularly meme cryptocurrencies due to their volatile nature. Consequently, Dogecoin, the largest meme coin, dropped to multi-month support levels,  signaling a pivotal moment for notable recovery or prolonged correction. 

Also Read: Crypto Prices Today June 19: Bitcoin Regains Hold Above $65K, LDO & ENS Lead Market Rally

Dogecoin Price Analysis: Whales Reduce Holdings as Retail Investors Gain Ground

The Dogecoin price has witnessed a slow yet steady correction trend resonating within two downsloping trendlines for the past three months. The trendlines act as major dynamic resistance and support for this memecoin developing a bullish continuation pattern called flag.

Under the influence of this pattern, the DOGE price turned down from $0.228 to 15 15-week low of $0.113 registering a loss of 50.4%. However, the price is now stabilizing around $0.12 as accompanied by other technical levels such as 50-weekly EMA, 61.8% FIB, and support trendline of the flag.

The renewed demand pressure at support confluence is evidenced by Tuesday’s long-tail rejection candle. Today, the DOGE price is up 1.62% to trade at $0.124 while the market cap reaches $18 Billion.

If the pattern holds true, the buyers could lead around a 15% upswing to hit the overhead trendline at $0.142. However, a breakout above the pattern’s resistance is needed for a better trend reversal signal which allows the asset to target $0.228.

Also Read: Dogecoin Price Soars Amid Arthur Hayes’s Increasing Bets On DOGE, What’s Next?

According to recent data from crypto analytics firm IntoTheBlock, the largest holders of Dogecoin, commonly referred to as whales, have been decreasing their holdings over the past year. The percentage of Dogecoin supply held by entities owning more than 0.1% each has seen a notable decline, dropping from 45.3% to 41.3%.

Over the past year, the largest Dogecoin whales have been reducing their holdings.

The percentage of the supply held by those owning more than 0.1% each has dropped from 45.3% to 41.3%.

In contrast, retail and mid-sized investors now hold a larger share of the total supply. pic.twitter.com/whFARLYveS

— IntoTheBlock (@intotheblock) June 18, 2024

This shift signifies a redistribution of Dogecoin holdings, where retail and mid-sized investors are now holding a larger share of the total supply. The distribution of whales is often considered a bearish sign for assets which may lead to further price correction.

Therefore, if the DOGE price slips below the lower trendline, the market selling pressure will accelerate and may push the memecoin below the $0.1 mark.

Technical Indicator

• RSI: The daily Relative Strength Index slope at 31% hovering just above the oversold region, which could attract dip buyers in the market. 
• EMAs: A potential bearish crossover between the 50-and-100-day Exponential Moving Average could raise selling pressure and stall DOGE reversal from $0.12 support.