The price of Dogecoin (DOGE) may be on the verge of a significant collapse as blockchain data shows an increase in whales sending their tokens to major exchanges.

According to Whale Alert, a massive Dogecoin 'whale' transferred over 70 million DOGE to Binance on Tuesday, likely to sell them for fiat currency.

The price of Dogecoin, recently around $0.3350, has now dropped nearly 20% from last week's high of $0.40.

It is important that DOGE is currently holding above the 21DMA after dropping below the 50DMA earlier in the week.

But the risks appear skewed towards Dogecoin dropping back and testing the mid-December low of $0.26.

Macroeconomic obstacles are increasing as U.S. long-term bond yields rise sharply after strong U.S. data complicates the Fed's policy outlook.

Friday's jobs report could add pressure to the market if it puts the Fed in a difficult position, which may again affect Dogecoin's price.

Furthermore, technical factors are painting a concerning picture. Dogecoin's inability to return above the 50DMA after a sharp drop below this level in mid-December is a sign that the bears still control this market.

And the lower peak this month compared to the peak in December could be a sign that Dogecoin's concerning new pattern of consistently hitting lower highs continues.

If the support level around $0.30 is broken, Dogecoin may decline sharply.

Dogecoin will drop below $0.30 – Buy when the price drops?

As macro headwinds arise, the likelihood of DOGE dropping below $0.30 is very high. This would provide investors with the opportunity to buy this leading meme coin at a price 40-50% lower than its recent highs.

But is buying Dogecoin when the price drops a good idea?

Yes, the macro backdrop for risk assets is likely to be challenging in 2025. Risks appear skewed towards tighter financial conditions (higher yields, fewer Fed rate cuts, etc.) compared to the easier financial conditions (more rate cuts, lower yields) currently.

Therefore, 2025 is unlikely to resemble 2021, a year defined by massive Fed stimulus measures (zero interest rates and QE) and U.S. government stimulus checks.

But that doesn't mean 2025 can't be a great year for Dogecoin's price.

The upcoming Trump administration is expected to usher in a new golden age for the U.S. cryptocurrency industry and the market at large.

And Dogecoin will play a special role here – the Trump administration will introduce a brand new government agency called the Department of Government Efficiency (DOGE), with Dogecoin as its mascot.

2025 is predicted to be a record year for cryptocurrency adoption, with Dogecoin poised to lead in 'market share.'

This means that, while 2025 is unlikely to be the year central banks implement stimulus measures, price risks still tend to skew upwards for Dogecoin.

A surge in price back to previous record levels is still likely to occur. Although major price rallies, as seen in previous cycles, may have to wait until financial conditions ease, that could be the story of 2026.

This exciting new meme coin seems set to follow the recent launch of the Pepe Unchained token, as investors calculated maximum profits post-launch of up to 7 times before selling.