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Highlights
- Dogecoin price eyes further dips amid a widespread meme coin market crash.
- Whales have sold 170M DOGE tokens within 24 hours causing bearish pressure as nearly $7M long positions were liquidated.
- The four-hour chart shows that the broader trend is bearish, and this may impact the meme token's ability to rally.
Dogecoin (DOGE) has dropped significantly in the last 24 hours, with a nearly 10% decline to trade at $0.215 today, May 17. This decline coincides with an increase in whale selling activity after large addresses sold more than 170M coins in 24 hours, impacting Dogecoin price performance.
Dogecoin Price Dips as Whales Dump 170M DOGE
Dogecoin’s price is under bearish pressure this weekend due to a meme coin market crash, as it fell to a one-week low on Saturday. The decline follows a drastic surge in whale selling activity, highlighting a negative outlook from these traders as they anticipate that this top meme coin is going to face further losses.
Data from Santiment shows that within 24 hours, the whales holding between 10M and 100M DOGE reduced their holdings from 23.91 billion to 23.74 billion. This highlights a sale of more than 170M tokens within 24 hours as Dogecoin price fell from $0.24 to $0.21.
This whale-selling activity coincides with weak demand for Dogecoin. Data from CoinMarketCap reveals that DOGE trading volumes have plummeted by over 34%, as traders lose interest in the meme token.
Derivatives Data Flips Bearish as DOGE Traders Post $7M Loss
The derivatives market data further highlights a bearish Dogecoin price forecast. Rekt data shows that in the last 24 hours, $6.78 million worth of longs were forcefully closed while $1.14 million worth of short positions were wiped out.
At the same time, open interest dropped by 6.9% to $2.58, indicating that more than $290 million open positions have been closed, highlighting a lack of conviction among traders that Dogecoin will recover.
However, as the above data shows, top traders are making bullish bets that the Dogecoin price is going to recover. On Binance, the long/short ratio is at 3.46, showing a long bias. However, the overall long/short ratio of 0.94 shows more short positions than long positions, which highlights that the broader sentiment is bearish.
Dogecoin Technical Analysis as $0.21 Support Holds
Dogecoin price is facing a steep decline as it fluctuates within a descending parallel channel on the four-hour chart. A breakout from the lower trendline will trigger a decline to $0.17 and wipe out the recent gains that Dogecoin made after Bitcoin broke above $100,000.
The Chaikin Money Flow indicator highlights that buying pressure is surging again after a steep decline towards the zero line. If the CMF continues to rise, it will show a drastic rise in buying activity that will catalyze Dogecoin’s uptrend.
Moreover, the price fluctuations within the Bollinger bands highlight that Dogecoin might record a correction in the near term. After dropping to the lower Bollinger band and defending this support level, DOGE may bounce back to the midline of the descending channel and ascend back to $0.23.
Frequently Asked Questions (FAQs)
1. Why is Dogecoin price dropping today?
2. Why are whales selling DOGE?
3. Can Dogecoin defend the support level at $0.21?
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