Dogecoin (DOGE) Poise For 20% Price Drop if This Happens

Dogecoin (DOGE) Faces Bearish Outlook with Whale Activity and Technical Analysis

Dogecoin (DOGE), the prominent crypto-meme coin, exhibits a downward trend based on whale activities and price analysis.

Whale Dump

Whale Alert, a whale transaction tracker, reported on Twitter that an unknown wallet transferred 146.6 million DOGE, valued at $56.5 million, to the cryptocurrency exchange Robinhood. In the cryptocurrency market, such transfers from wallets to exchanges often indicate a potential sell-off, leading to selling pressure and price declines.

Technical Analysis

Technical analysis reveals bearish signals for DOGE. It has formed an inverted hammer candlestick pattern at the crucial resistance level of $0.42, followed by downside momentum. If DOGE remains below this level, analysts predict a potential decline of 20% to $0.35. However, this bearish outlook is only valid until DOGE trades below $0.42.

Traders' Bearish Sentiment

On-chain analytics firm Coinglass supports the bearish outlook. The DOGE long/short ratio indicates short sellers' dominance. At press time, this ratio stood at 0.78, the lowest since November 2024. Additionally, 56% of top traders hold short positions, while only 44% hold long positions.

Despite the bearish outlook, the 200-day Exponential Moving Average (EMA) on a daily timeframe suggests an uptrend.