What's Happening to Dogecoin? Large Whale Dumps 120 Million, Price Plummets for 5th Consecutive Week

▲ Dogecoin (DOGE)/AI generated image ©

Dogecoin (DOGE) has fallen for five consecutive weeks, dropping to the $0.075 level. While large whale investors have sold 120 million tokens, small and medium-sized whales are buying at low prices, highlighting conflicting movements among investors and the risk of further declines.

According to investment media FXStreet on November 2 (local time), Dogecoin has continued its five-week decline since late September, trading around $0.075-$0.076 today. With the price below all major Exponential Moving Averages (EMAs), a short-term bearish trend persists due to selling pressure from large investors and deteriorating on-chain metrics. While some buying activity is observed in small and medium-sized whale wallets, analysis suggests it is insufficient to offset the overall market selling pressure.

According to Supply Distribution data from on-chain analytics firm Santiment, large whale wallets holding 10 million to 100 million Dogecoin have disposed of a total of 120 million DOGE since last Thursday. In contrast, small and medium-sized whale wallets holding 100,000 to 1 million and 1 million to 10 million tokens have purchased an additional 100 million DOGE during the same period. This indicates that while large investors are reducing their holdings, relatively smaller whales are utilizing price declines as buying opportunities. FXStreet pointed out that if selling by large wallets continues, Dogecoin could face additional short-term downward pressure.

Overall market on-chain indicators also show weakness. According to analysis data from CryptoQuant, large whale orders and overheating signals were observed in both the Dogecoin spot and futures markets, with selling pressure dominating both markets. This suggests that despite some investors buying at low prices, overall trading sentiment is leaning bearish. The simultaneous dominance of selling in both spot and derivatives markets has been identified as a factor limiting Dogecoin's short-term rebound.

Technically, Dogecoin is trading below its 50-day EMA at $0.082, 100-day EMA at $0.083, and 200-day EMA at $0.090. The downtrend line at $0.079 also acts as a short-term resistance, indicating potential selling pressure during a rebound. The Relative Strength Index (RSI) remains in the mid-30s, indicating weak buying momentum, and the Moving Average Convergence Divergence (MACD) shows no clear direction near the 0 line. To regain an upward trend, Dogecoin must first break above $0.079, then surpass the $0.082-$0.083 range. Subsequently, $0.088 and $0.090 are presented as additional resistance levels. A higher resistance level is formed at $0.1027.

Conversely, if the decline continues, the next key support level is analyzed to be $0.068. While demand for low-price buying may enter at this price level, if the daily closing price falls below $0.068, the correction could deepen further. FXStreet assessed that Dogecoin's short-term bearish pressure continues due to a combination of large whale selling, selling dominance in spot and futures markets, and a breach of major moving averages. Despite accumulation by small and medium-sized whales, the current price remains below key resistance levels, and $0.068 is presented as a critical support level that will determine whether further declines occur.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*