Dogecoin Whales Go on a Selling Spree: More Pain Ahead for DOGE?

TL;DR

Large holders have sold off 270 million DOGE ($70M) within the last 24 hours, increasing supply and signaling potential further declines if demand does not keep up. However, some analysts predict a possible recovery based on historical patterns of DOGE.

DOGE Experiences Sharp Decline

Donald Trump's recent actions have negatively impacted the cryptocurrency market, with the imposition of tariffs on China, Canada, and Mexico leading to a significant correction in digital assets. Dogecoin (DOGE), the original meme coin, has been particularly affected, with its price dropping to $0.21. Currently, it trades at approximately $0.25, a 16% daily decrease.

Whales Sell Off DOGE

Analyst Ali Martinez reports that whales have sold 270 million DOGE (worth almost $70 million at current rates) in the last 24 hours. Such actions may increase the circulating supply of the asset, potentially leading to a price decline if demand does not catch up. Moreover, smaller investors may interpret this as a concerning sign and contribute to the sell-off.

Bearish Indicators Emerge

Martinez also notes that DOGE has experienced a bearish crossover between the Market Value to Realized Value (MVRV) ratio and its 30-day Simple Moving Average, indicating a potential price correction ahead.

DOGE Price Predictions

Despite the recent decline, several market observers remain optimistic about the recovery of the meme coin based on historical performance. For example, Trader Tardigrade points to previous pullbacks in 2016 and 2020, which were followed by significant bull runs.

KALEO and Crypto Tony have also expressed their support, considering the current price level a good entry point and predicting a potential push to $0.34.