Dogecoin Price Forecast: DOGE whale transactions fell by more than 70%; bearish move ahead

Dogecoin price continues to trade lower to $0.24 after falling more than 7% the previous week.
The technical outlook suggests a further correction as RSI and MACD indicators signal bearish divergences.
Santiment data shows that DOGE whale transactions are falling, indicating weakness.

Manish Chhetri FXStreet

Dogecoin (DOGE) continues to trade down around $0.24 after falling more than 7% in the previous week. The technical outlook suggests a further correction as DOGE’s momentum indicators reflect bearish divergences. Santiment data show that DOGE whale transactions are falling, indicating signs of weakness.

Dogecoin whale activity has fallen off a cliff

Dogecoin price has fallen more than 30% since mid-January and continues to edge down. According to Santiment data, DOGE whale transactions have also declined with its price.

The graph below shows that DOGE’s $100K+ weekly whale transactions have declined from 20,200 to 6,200 since early November. Moreover, more than $1 million in weekly transactions have also fallen from 3,490 to 850 during the same period, indicating weakness in whale accumulation.

Doge weekly whale transactions chart. Source: Santiment

Dogecoin technical outlook: Momentum indicators show a bearish move ahead

Dogecoin’s weekly chart declined 7.15% last week, closing below its 50% price retracement level (drawn from an August 14 low of $0.05 to a December 2 high of $0.48) at $0.27. At the start of this week on Monday, it hovers around $0.24.

If DOGE continues to decline, it could extend the correction to retest its weekly support at $0.18.

The Relative Strength Index (RSI) indicator on the weekly chart reads 48, below its neutral level, indicating a rise in bearish momentum. Moreover, the Moving Average Convergence Divergence (MACD) indicators also show a bearish crossover on the weekly chart, suggesting a continuation of the downward trend.