The sell-off by a large number of Dogecoin whales has raised serious concerns among investors about future Dogecoin price trends as market data hints at an impending correction.

Dogecoin whales sparked serious market concerns at the start of the week, recently dumping nearly 176 million Dogecoins on a cryptocurrency exchange. Although the price of the famous dog-themed meme coin has risen, the appearance of whale selling has triggered investor sentiment that a correction is imminent. Meanwhile, Dogecoin prices outperformed Bitcoin in intraday gains, surging 4% despite the huge sell-off. Market observers speculated on the asset's future price action after the recent market statistics were released.

Dogecoin whales selling during rally sparks investor concerns

In a remarkable turn of events, a Dogecoin whale was recorded dumping 176.64 million Dogecoins, worth $25 million, to leading cryptocurrency exchange Binance. According to Whale Alert data, as of October 20, wallet address DD1…jCn transferred the above number of tokens to Binance. The deal highlights a loss of investor interest in the asset, raising bearish concerns about the future price movement of the leading meme token.

However, it is worth mentioning that the coin is currently on an uptrend amid the ongoing debate over the US presidential election and on the back of Musk-related events. CoinGape Media reported that the coin is riding a bull wave against the backdrop of Elon Musk’s recent $75 million donation to Donald Trump to elect Trump. However, the massive sell-off by Dogecoin whales has put selling pressure on the asset, raising serious concerns about the future price action of the coin.

Will DOGE correct next?

At press time, Dogecoin price has gained 4% in the past 24 hours and is currently trading at $0.1473. The coin’s intraday low and high were $0.1376 and $0.1488, respectively. Notably, the coin’s weekly and monthly charts show gains of 32% and 39%, respectively. However, as mentioned above, investors remain concerned about future trends due to the massive sell-off by the aforementioned Dogecoin whales.

Additionally, Coinglass data showed that DOGE futures OI fell 0.5% to $1.06 billion, adding to market concerns about the asset. CoinGape Media's recent analysis of DOGE prices suggests that the meme token is set to see a pullback in the future after entering the overbought zone with a weekly gain of about 30%. Notably, the analysis showed that the asset's price diverged too far from the exponential moving average, pointing out that buyers overextended the recovery trend. This dynamic suggests that the token could see a pullback due to overbought conditions.

Additionally, in an article published on X last weekend, crypto market analyst Ali Martinez noted that TD Sequential has issued a sell signal on the token’s daily price chart. This indicator further suggests that Dogecoin will see a short-lived pullback before continuing its upward trend. All in all, recent market dynamics collectively suggest that the meme-themed cryptocurrency is preparing for a potential pullback in the future.