🔥 Dogecoin ($DOGE ) Poise For 20% Price Drop if This Happens
Dogecoin (DOGE), the popular and world’s largest crypto-meme coin, is poised to continue its downward momentum as whale activity and price action indicate a bearish sign.
🔸 Whale Dumped 146.6 Million #DOGE
Recently, Whale Alert, a whale transaction tracker, posted on X (formerly Twitter) that an unknown wallet had transferred a significant 146.6 million DOGE worth $56.5 million to the cryptocurrency exchange Robinhood.
💬 61,160,251 DOGE (23,493,325 USD) transferred from unknown wallet to #Robinhood — Whale Alert (@whale_alert) December 10, 2024
In the realm of cryptocurrency, the transfer of assets from wallets to exchanges is often seen as a negative sign. It indicates that these assets are being transferred with the intention of being sold, which can create selling pressure and lead to price declines.
🔸 Dogecoin (DOGE) Technical Analysis and Upcoming Levels
According to expert technical analysis, DOGE appears bearish as it has formed an inverted hammer candlestick pattern at the crucial resistance level of $0.42. Additionally, it has also begun to show downside momentum, which partially confirms this bearishness.
Based on recent price action and historical price momentum, if DOGE remains below the $0.42 level, there is a strong possibility it could decline by 20% to reach $0.35 in the coming days. However, this bearish thesis is only valid as long as DOGE is trading below the $0.42 level, otherwise, it may fail.
Despite this bearish outlook, the 200-day Exponential Moving Average (EMA) on a daily time frame indicates that it is in an uptrend.
🔸 Traders Bearish Outlook
However, this bearish outlook is further supported by on-chain analytics firm Coinglass. Data from DOGE’s long/short ratio indicates that short sellers are currently dominating.
At press time, this ratio currently stands at 0.78, a record low since the beginning of November 2024. In addition to this, currently, 56% of top traders hold short positions, while 44% hold long positions.