Massive #DOGEUSDT Selling Pressure Spikes: What’s Happening?

Whale activity is currently the main factor driving a significant increase in selling pressure on Dogecoin. The short-term moving average fell below the long-term moving average on July 23, which is generally interpreted as a bearish signal.

This sudden sell-off occurred after a death cross. According to on-chain indicators, buying and selling volume is clearly out of balance, with the balance favoring sellers. The price drop was accompanied by a noticeable rise in trading volume. As is clear from the given chart, Dogecoin’s massive trading volume peaked on July 20, 2024, with 1,032 trades in seven days.​

This additional activity is consistent with increasing selling pressure on whale accounts. The 5.73 billion DOGE moved in the past 24 hours is an important number that highlights the current market conditions.

The broader on-chain picture suggests that Dogecoin may be approaching a reversal point, although these indicators point to a pessimistic short-term outlook. In the past, strong selling pressure, especially from whales, has often marked a market bottom and the beginning of a possible recovery.

The relative strength index (RSI) on the Dogecoin chart is hovering at the 50 level, indicating that the asset is neither overbought nor oversold. If buyers step in, this could signal a trend reversal is coming. Moving averages are also showing mixed signals. The asset's ability to hold above key support levels such as the 100 EMA, while recent price action shows resilience above $0.125, could indicate underlying strength, even as the death cross signals a bearish trend.

Because the Dogecoin community is large and vibrant, its market sentiment often defies traditional technical analysis conventions, leading to unexpected rallies. $DOGE