Dogecoin (DOGE) continued to grapple with market volatility Wednesday amidst a turbulent week for cryptocurrencies, exacerbated by significant sell-offs for Bitcoin attributed to miners.
Notably, massive transfers from wallets to exchanges like Robinhood, as reported by crypto tracking platform Whale Alert on Tuesday, also placed pressure on the world’s largest meme token, with fears that whales are on the verge of dumping their bags.
Crypto analytics firm Intotheblock also highlighted a shifting ownership landscape, noting a decrease in holdings by major DOGE whales over the past year.
“Over the past year, the largest Dogecoin whales have been reducing their holdings. The percentage of the supply held by those owning more than 0.1% each has dropped from 45.3% to 41.3%. In contrast, retail and mid-sized investors now hold a larger share of the total supply,” the firm reported.
Notably, while this redistribution has seen retail and mid-sized investors now holding a larger portion of the total supply, historically, this group is likelier to sell their holding rather than HODL, which partially explains the challenge facing bulls.
Meanwhile, despite the prevailing bearish sentiment, some analysts remain optimistic about DOGE’s prospects. Notably, trader “Taldigrade” shared his bullish outlook stating, “$DOGE has been forming Ladle Pattern in each cycle. The bowl is ready Are you ready for the shaft?? Ride on it Dogecoin”.
The pundit drew parallels with historical patterns, highlighting that previous bull runs in 2017 and 2021 were preceded by prolonged consolidation phases, ultimately resulting in an astounding surge of over 2000%. According to him, if a similar scenario were to unfold, DOGE could potentially reach a price target of $3.
Echoing this sentiment, analyst Jake Wujastyk underscored that DOGE recently rebounded from a long-standing support trend line, positioning itself favorably for a significant upward movement.
Elsewhere, Arthur Hayes, co-founder of BitMEX, also expressed optimism, expressing his intention to purchase more DOGE in the current consolidation phase.
“I’m loving this choppy sideways to down shitcoin price action. I’m adding to my bags of PENDLE and DOGE.” He tweeted.
However, amidst the optimism, cautionary voices urge vigilance. Trader “Cryptojack” cautioned that DOGE must close above $0.13 on the weekly candle to sustain bullish momentum and avoid potential downside risks associated with failing to breach key technical levels.
At press time, DOGE was trading at $0.1253, reflecting a modest 2.59% increase in the past 24 hours. However, the cryptocurrency was down approximately 10% over the past week.