Dogecoin Price at Risk: Analysts Predict 20% Decline

Dogecoin Price Vulnerable: Analysts Forecast 20% Drop

Dogecoin (DOGE), the prominent meme cryptocurrency, is expected to prolong its downward trend based on indicators from whale activity and price action.

Whale Transfers Large Amount of DOGE

Whale Alert, a transaction tracker, reported a large transfer of 146.6 million DOGE (worth $56.5 million) from an unknown wallet to the cryptocurrency exchange Robinhood. In the cryptocurrency domain, such transfers to exchanges are commonly perceived as a bearish sign, suggesting an intention to sell that could lead to price declines.

Technical Analysis and Support Levels

Technical analysis reveals a bearish outlook for DOGE, with the formation of an inverted hammer candlestick pattern at the crucial resistance level of $0.42. Furthermore, downward momentum is evident. If DOGE remains below $0.42, there is a significant probability of a 20% decline to $0.35 in the near term. However, this projection is only viable while DOGE trades below the $0.42 level.

Traders' Sentiment

Coinglass, an on-chain analytics firm, also supports the bearish sentiment. The DOGE long/short ratio indicates dominance by short sellers. Currently, this ratio stands at 0.78, a low not seen since November 2024. Additionally, 56% of top traders hold short positions, while only 44% hold long positions.

200-Day Moving Average

Despite the bearish outlook, the 200-day Exponential Moving Average (EMA) on the daily time frame suggests an uptrend. However, this trend may be subject to change if DOGE fails to regain support above $0.42.