If this is the case, Dogecoin (DOGE) must drop by 20%

Whales sell 146.6 million DOGE!

Recently, Whale Alert mentioned on X (formerly known as Twitter) that a mysterious wallet transferred 146.6 million DOGE to the Robinhood exchange, valued at $56.5 million!

In the crypto world, transferring assets from a wallet to an exchange is generally not a good sign. Everyone believes this indicates selling pressure, which may lead to a price drop.

Dogecoin (DOGE) technical analysis is not looking good

Experts looked at the charts and said DOGE’s current trend is poor, with an inverted hammer forming at $0.42, suggesting a drop is imminent. Furthermore, there are signs of a decline, reinforcing the feeling of an impending drop.

If DOGE cannot hold above $0.42, it may drop by 20% in the next few days, down to $0.35. However, this prediction only holds if DOGE breaks below $0.42; otherwise, it may not be accurate.

Although it looks like a drop is coming, the 200-day EMA (Exponential Moving Average) on the daily chart is still trending upwards, which is a bit conflicted.

Most traders are bearish

Data from on-chain analysis firm Coinglass also supports the bearish outlook. The short-selling power is strong now, with a long to short ratio of 0.78, marking a new low since early November 2024. Moreover, 56% of the big players hold short positions, while only 44% are bullish.

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