Dogecoin support wavers as whales move; Brace for further DOGE drop?

Meme cryptocurrency Dogecoin (DOGE) continues to grapple with bearish sentiment as it aligns with the broader market downturn. The recent decline has placed significant pressure on DOGE to maintain its price above crucial support levels, with the current $0.15 threshold appearing increasingly uncertain.

Attention has now shifted to how long the support will hold, particularly considering on-chain data indicating heightened activity among whales in the Dogecoin ecosystem. Notably, data by Whale Alert on April 14 revealed that 600 million DOGE, valued at approximately $92 million at the time of transfer, moved from an unknown wallet to crypto exchange Binance. 

Additionally, another 350 million DOGE, valued at around $53.92 million, moved from Robinhood to an undisclosed wallet.

Implication of the transfer 

Given the magnitude and timing of these transactions, the Dogecoin community remains on edge regarding their full implications. Generally, whales are significant players in the crypto market, as their buying and selling activities can significantly impact a token’s price. 

In this case, the transfer of the meme coin to Binance could signal potential volatility and impending losses. Typically, investors move their assets to trading platforms when they intend to sell them, indicating potential bearish sentiment.

On the other hand, the whale transfers could also offer mixed signals, especially regarding the one involving Robinhood. Notably, the movement of funds off exchanges can sometimes signal fresh accumulation, and in the case of DOGE, it could suggest buying during the dip. 

Considering the large-scale nature of the transfer from Robinhood, it might be a bullish indicator of the meme coin’s price.

What next for DOGE? 

By press time, Dogecoin was trading at $0.153, having corrected by almost 12% in the last 24 hours. The largest meme coin is down by 22% on the weekly timeframe.

Overall, the prevailing mid-term outlook for Dogecoin remains bearish. It’s worth noting that DOGE has found support at the $0.15 level after dropping as low as $0.141 in the last 24 hours.

Indeed, the current support can be considered a hotspot for buyers, potentially preventing a more extended decline and possibly igniting a rally that could retest resistance levels at $0.2

However, considering that DOGE is trading in tandem with the overall market, any sustained bullish sentiments would likely see the coin lose its position and correct to as low as $0.13. The transaction from Binance could validate this outlook. 

Overall, given the prevailing bearish pressure on Dogecoin and the substantial whale activity, the meme coin requires support from the broader market to avoid experiencing further declines.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.