DOGE Price Prediction: Will the Drop in Whale Transactions Lead to More Losses for Dogecoin?

Dogecoin Price Declines Amidst Diminished Whale Activity

The cryptocurrency market has witnessed a decline in whale activity, signaling reduced confidence among major investors. This has contributed to downward pressure on the Dogecoin (DOGE) price.

Price Movement and Technical Indicators

DOGE has fallen below critical support levels at $0.27, with the Relative Strength Index (RSI) hovering at 48. Bearish signals from the Moving Average Convergence Divergence (MACD) indicator suggest a continuation of the downtrend. Despite a slight rebound, DOGE remains in a descending pattern, trading around $0.25.

Whale Transaction Data

Santiment's on-chain data reveals a significant drop in transactions above $100,000. This decrease in whale activity corresponds with a decline in large investor accumulation. The number of transactions exceeding $1 million has also plummeted. These factors indicate a diminished confidence in DOGE, leading to increased selling pressure.

Technical Signals Point to Further Correction

Dogecoin's price has been below the $0.27 support level, indicating an extended bearish trend. The RSI value of 48 confirms the negative market sentiment. The bearish signal from the MACD indicator suggests a continued downward price movement.

Derivative Data Indicates Weakening Interest

According to Coinglass, DOGE's open interest has decreased, indicating less interest among traders. This is further supported by the recent liquidations of long positions, highlighting significant sell pressure.

Outlook and Sentiment

The combination of declining whale activity and bearish technical signals paints a negative outlook for Dogecoin. Analysts predict a potential price drop to the $0.18 support level. However, some remain optimistic about a recovery, citing Elon Musk's past support for DOGE.

Disclaimer: This article provides information only and should not be construed as investment advice.