Meme cryptocurrency Dogecoin (DOGE) continues to battle bearish sentiment as it matches the broader market downturn. The recent decline has put significant pressure on DOGE, forcing it to support the price above a critical support level, with the current $0.15 threshold becoming increasingly uncertain.
Attention has now turned to how long support will last, especially with on-chain data indicating increased activity among whales in the Dogecoin ecosystem. Notably, Whale Alert data from April 14 showed that 600 million DOGE, valued at approximately $92 million at the time of transfer, was transferred from an unknown wallet to cryptocurrency exchange Binance.
In addition, another 350 million DOGE, worth approximately $53.92 million, moved from Robinhood to an unknown wallet.
Consequences of the transfer
Given the scale and timing of these transactions, the Dogecoin community remains on edge regarding their full implications. Typically, whales are important players in the cryptocurrency market as their buying and selling activity can significantly impact the price of a token.
In this case, transferring the meme coin to Binance could signal potential volatility and upcoming losses. Typically, investors move their assets to trading platforms when they intend to sell them, indicating potential bearish sentiment.
On the other hand, whale transfers can also send mixed signals, especially when it comes to Robinhood. Notably, the movement of funds from exchanges can sometimes signal new accumulation, and in the case of DOGE, it can indicate buying during a downturn.
Given the massive nature of the transfer from Robinhood, this could be a bullish indicator for the price of the meme coin.
What's next for DOGE?
At press time, Dogecoin was trading at $0.153, having corrected nearly 12% over the past 24 hours. The largest meme coin fell 22% in a week.
DOGE seven-day price chart. Source: Finbold
Overall, the prevailing medium-term outlook for Dogecoin remains bearish. It is worth noting that DOGE found support at $0.15 after falling to $0.141 in the last 24 hours.
Indeed, the current support could be seen as a buying hotspot that would potentially prevent a more protracted decline and possibly trigger a rally that could retest resistance levels at $0.2.
However, given that DOGE trades in tandem with the broader market, any sustained bullish sentiment will likely see the coin lose ground and correct towards the $0.13 level. A transaction from Binance can confirm this point.
Overall, given the prevailing bearish pressure on Dogecoin and significant whale activity, the meme coin needs support from the broader market to avoid falling further.
