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Dogecoin price has more than 10% to crash thanks to these whales dumping DOGE

  • Dogecoin price hovered around the $0.0813 support level before shedding nearly 10% along with the markets.
  • This crash has paused as DOGE enters an area of support, extending from $0.0705 to $0.0745. 
  • A daily candlestick close above $0.0813 will invalidate the bearish thesis. 

Dogecoin price has dropped sharply over the last four hours in tandem with the market. The lack of buying pressure combined with the sell-side dynamics forewarns a massive crash for DOGE.

Also read: Shiba Inu vs. Dogecoin, which meme coin will hit the $1 bullish target first?

Dogecoin price in a precarious position

Dogecoin price has been hovering between $0.0705 and $0.0946 levels since early November 2022. While there were attempts to overcome this range, they were failures, which pushed DOGE back into consolidation. 

Currently, Dogecoin price bounces off the $0.0745 support structure, and investors can expect a long, boring consolidation to occur from here. Depending on Bitcoin price behavior, a minor bounce attempting to tag $0.0813 could occur, but the journey is likely going to knock DOGE lower.

In particular, Dogecoin price could break down the $0.0745 level and tag the selling climax at $0.0705. If sellers continue to run amok, DOGE could even retest the $0.0645 barrier.

DOGE/USDT 1-day chart

DOGE/USDT 1-day chart

While Bitcoin price selloff pushed the altcoins along, including Dogecoin price, to crash, a closer look reveals an interesting picture. The Supply Distribution chart shows that whales holding 1 million to 10 million DOGE are more in touch with Dogecoin price movements.

Interestingly, these wallets dropped from 3,831 to 3,781 from February 25 to March 2. This sudden drop indicates that these investors offloaded their DOGE holdings and have been doing so since December 2022. 

Therefore, a further selloff in Dogecoin price should not be unimaginable for interested buyers.

DOGE supply distribution

DOGE supply distribution

On the other hand, if Dogecoin price produces a daily candlestick close below $0.0813, the bearish thesis will be invalidated. Such a development could see DOGE attempt a revisit of the buying climax at $0.0946.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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