Dogecoin Loses 20% in 7 Days, But Can This Group Turn Things Around?

Dogecoin has experienced a significant decline of 20% in the past week, with the crypto market facing heavy losses due to massive selling of prominent currencies like Bitcoin [BTC] and Ethereum [ETH].

The contagion has also affected Dogecoin [DOGE], the world's largest memecoin. Data from Coinstats indicates a drop of over 10% in the past 24 hours, bringing weekly losses to 20% and monthly losses to more than 38%.

This price drop has triggered liquidations of over $15 million in DOGE positions in the derivatives market, as reported by Bitcoinworld using data from Coinglass.

Litmus Test for DOGE

Prominent crypto trader Kevin emphasized the importance of DOGE's current price levels on X.

"After the weekly close I made the prediction that #Dogecoin would come down to test the .125-.13 cents level. We officially came down to .129 so far. At this point this is a major support zone and if the #Crypto market is in a real bull market we should not lose this zone. If we… https://t.co/DFWqFiydia"
— Kevin (@Kev_Capital_TA) April 30, 2024

Kevin asserted that the 12.5–13 cents level is a crucial support zone and DOGE must maintain it for bullish sentiment to prevail. He stated, "If we do lose this zone then we will reassess this market."

Whales Step In

Amidst falling prices, whales have become more active. Bitcoinworld's analysis of Santiment's data reveals an increase in large transactions exceeding $100,000 over the past two days.

Additionally, addresses holding between 1,000 and 1 million coins have been observed rising. These metrics suggest that wealthy investors are taking advantage of the dip to purchase DOGE.

The bullish interest is further reflected in the long exposure of whales. According to Bitcoinworld's analysis of Hyblock Capital data, the percentage of whale positions longing DOGE has increased from 72.9% to 74.85% in the past 24 hours.

Persistent Negative Sentiment

DOGE's social activity has also increased in the past 24 hours, with a rise in mentions on top crypto-focused channels. However, most commentary remains pessimistic, as the Weighted Sentiment trend indicates negative sentiment.

Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in assumes no liability for investments made based on the information provided on this page. Independent research and/or consultation with a qualified professional is strongly recommended before making any investment decisions.

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