Dogecoin Price Risks 44% Crash As DOGE Whales Interest Fade, What’s Next?

Dogecoin price continues to be under selling pressure, dropping another 3% following a major rug pull incident in LIBRA meme coin, endorsed by Argentinian President Javier Milei last weekend. The DOGE MVRV price bands suggest the formation of a death cross hinting at the possibility of a 44% correction from here. Furthermore, on-chain data shows that the Dogecoin whale activity has collapsed by 88% in the last three months since mid-November.

Dogecoin Price Can Correct 44%, Says Analyst

Popular crypto analyst Ali Martinez noted that DOGE could be heading for a challenging period amid a bearish technical chart pattern. Martinez highlighted a “death cross” between Dogecoin’s Market Value to Realized Value (MVRV) ratio and its 200-day moving average (MA).

The analyst stated that historically, such chart patterns have led to significant declines, with Dogecoin price dropping 26% and 44% during the last two instances of this pattern. If this happens, DOGE could collapse all the way to $0.15 from the current levels.

Additionally, analyst Martinez has highlighted a massive drop in DOGE whale activity. As per Matinez, there’s a significant decrease in whale activity on the Dogecoin ($DOGE) network, with a drop of nearly 88% since mid-November. This decline in large transactions raises questions about the current market dynamics for the popular meme coin.

Meme Coins Take A Massive Hit

Over the past weekend, the Dogecoin price has corrected 7% as the broader meme coin sector takes a major hit following the launch of Argentina’s LIBRA meme coin, which faced a massive pump and dump. Apart from top players like Dogecoin and Shiba Inu (SHIB), celebrity meme coins have taken the most hit.

Furthermore, as per the Coinglass data, the DOGE futures open interest has tanked 5.27% to $2.41 billion while the 24-hour liquidations have shot up to $3.57 million of which, $3.1 million is in long liquidations.

DOGE Traders Remain Optimistic

Despite the technical charts suggesting bearishness for Dogecoin price, traders continue to be optimistic about gains moving ahead. Furthermore, with developments around the SEC’s potential approval of a spot Dogecoin ETF, the optimism remains intact. Last week, the U.S. Securities and Exchange Commission (SEC) acknowledged the DOGE ETF filing by asset manager Grayscale raising further hopes within the crypto community.

Crypto analyst Bluntz has expressed optimism about Dogecoin (DOGE), highlighting its stability after two weeks of consolidation following a recent capitulation event. “$DOGE is looking pretty solid here, in my opinion,” Bluntz noted, adding, “If there’s one saying that’s always stuck with me, it’s never short a dull market.”

The analyst’s remarks suggest that Dogecoin’s current quiet phase could indicate potential strength, with traders keeping a close watch for future price movements.