A substantial $30 million withdrawal of Dogecoin from exchanges was seen recently. The market decline as a whole has caused cryptocurrency liquidations to soar to $200 million coinciding with this outflow.

The significant shift of DOGE into self-custody in spite of the market-wide collapse may be a bullish indication for the meme coin. A pronounced declining trend can be seen in the daily DOGE/USDT chart.

Volume analysis shows that the price decline is accompanied by an increase in trading activity. When there is a drop in price and an increase in volume, panic selling is usually indicated. On the other hand, DOGE may be approaching oversold territory given that the RSI is currently at about 35.

DOGE/USDT Chart by TradingView

This may indicate that there will soon be less pressure to sell. The $30 million DOGE outflow from exchanges is a noteworthy indicator of whale activity. Large holders typically signal a shift toward long-term holding and self-custody when they remove their assets from exchanges.

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By decreasing the amount of DOGE that is readily available on exchanges, this movement may lessen selling pressure and improve the conditions for price stability or even a rebound. It suggests that whales are confident in the asset's future when they move their DOGE to self-custody.

This could mean that these major investors are getting ready to hold DOGE for a long time in anticipation of further price growth rather than selling it right away.  Almost all digital assets, including DOGE, have been impacted by this market-wide correction.

Withdrawals and the move toward self-custody might mean that Dogecoin's worst days are behind us. The price of DOGE may stabilize as a result of less selling pressure brought on by lower exchange holdings. A gradual recovery for DOGE may occur if the current support levels hold.