Massive Dogecoin (DOGE) Selling Pressure Skyrocketing: What's Happening?

Dogecoin Sees Spike in Selling Pressure Amidst Whale Activity

Dogecoin's price has experienced a notable downward trend due to increased selling pressure from whale activity. The short-term moving average has fallen below the long-term average, indicating a bearish signal.

On-Chain Metrics and Transaction Volumes

On-chain metrics reveal a significant imbalance between bid and ask volumes, favoring sellers. The recent sell-off has also been accompanied by a surge in transaction volumes. Notably, Dogecoin's transaction volumes peaked on July 20, 2024, with over 1000 transactions within a seven-day period.

Additionally, whales have been actively selling DOGE, with a significant 5.73 billion DOGE moved in the past 24 hours.

Technical Indicators

Despite the short-term bearish outlook, on-chain data suggests that Dogecoin may be approaching a reversal point. Historically, heavy selling pressure from whales has often signaled market bottoms and potential recoveries.

The relative strength index (RSI) is hovering around 50, indicating that Dogecoin is neither overbought nor oversold. This could signal a potential trend reversal if buyers step in.

Moving averages also present a mixed signal. Dogecoin's ability to remain above support levels like the 100 EMA and its recent resilience above $0.125 indicate underlying strength despite the bearish death cross.

Community Influence

Dogecoin's vibrant community often defies conventional technical analysis, leading to unexpected rallies. Therefore, market sentiment for Dogecoin may diverge from broader technical indicators.