Dogecoin: Whales shift 17B DOGE as prices fall and that means…

DOGE's Price Plunges, but Metrics Hint at Potential Trend Reversal

DOGE's price has experienced a significant drop of over 5% in the past 24 hours. However, several metrics and technical indicators suggest that a trend reversal may be imminent.

Dogecoin Whales Increase Activity

Coinpedia Market recently reported a surge in large DOGE transactions amidst speculations surrounding the Ethereum ETF. The total value of these transactions exceeded $100,000, increasing from $1.53 billion to $3.01 billion within the last day.

This surge indicates a substantial increase in the volume of DOGE being moved by whales, with the number of coins transferred rising from 9.74 billion to 17.97 billion.

Network Activity Remains High

Network activity for DOGE has remained elevated in recent days. The memecoin's daily active addresses have been stable throughout the week, and its velocity has also increased, indicating that DOGE is being used more frequently in transactions.

Bears Gain Control

Despite the whales' increased activity, bears have taken control as DOGE's price has dropped. According to CoinMarketCap, DOGE is down by over 5% in the last 24 hours. At the time of writing, it is trading at $0.1578 with a market capitalization exceeding $22.7 billion.

Bearish Indicators

The recent price decline has also impacted DOGE's social metrics. Its social volume has decreased, and its weighted sentiment has declined, indicating dominant bearish sentiment.

Additionally, the MVRV ratio has plummeted in recent days, another bearish indicator.

Potential Trend Reversal

However, the bearish trend may not persist for long. DOGE's fear and greed index is currently at a value of 37, indicating that the market is in a "fear" phase. Historically, when this metric reaches this level, it signals a high probability of a trend reversal.

Technical Analysis

An analysis of DOGE's daily chart shows that the Money Flow Index (MFI) has registered an uptick. The price is currently testing its support near its 20-day Simple Moving Average (SMA).

If DOGE successfully rebounds from this support, investors may witness a price recovery. However, the Chaikin Money Flow (CMF) remains bearish, suggesting the possibility of continued price declines.