Dogecoin Plunges Below Key Support as Whales Exit and ETF Enthusiasm Wanes
Dogecoin (DOGE) is facing a significant downturn, with its price threatening to break below the critical $0.15 support level. A week marked by substantial selling from large holders, often referred to as "whales," and clear technical breakdowns have erased much of the meme coin's recent recovery, leaving analysts warning of further declines.
Heavy Whale Distribution Fuels Price Drop
The recent wave of selling saw over 1 billion DOGE, equating to approximately $440 million, offloaded by major wallets. This massive distribution followed Dogecoin's repeated failure to overcome resistance levels between $0.18 and $0.19, triggering a sharp correction. On Tuesday alone, DOGE fell 5% to $0.16, breaching crucial support points amidst intensified institutional selling pressure. Notably, trading volume surged by an astounding 94% above average during the decline, peaking at 2.05 billion DOGE, confirming a broad sell-off across the market.
Technical Indicators Confirm Bearish Outlook
Technical analysis reinforces the bearish sentiment, revealing a complete breakdown from a multi-week triangle pattern. Dogecoin's price is now trapped below all major exponential moving averages (20, 50, 100, and 200-day), which have transitioned into overhead resistance. The Relative Strength Index (RSI) stands at 40.5, indicating moderate bearish momentum, while the Moving Average Convergence Divergence (MACD) remains in negative territory. Experts suggest that a dip below the 40-mark on the RSI could trigger an even more aggressive downside movement. The $0.15 mark is identified as the next crucial support level; failing to hold this could expose DOGE to targets near $0.13, with a sustained close below $0.150 confirming a definitive breakdown. For any meaningful reversal, bulls would need to reclaim $0.189 and establish a firm position above the EMA cluster.
ETF Hopes Fade Amidst Market Weakness
Despite reports that Bitwise and Grayscale are advancing Dogecoin ETFs through new regulatory pathways that bypass direct SEC approval, market optimism has yet to translate into price strength. Investor enthusiasm surrounding these potential products appears to have been muted by weeks of consistent price weakness. With bearish volume continuing to dominate, analysts caution that unless buyers can quickly regain control above the $0.165-$0.17 range, Dogecoin could extend its slide towards the $0.13-$0.10 zone in the upcoming trading sessions, potentially retesting multi-month lows.
