Dogecoin price drops 11% as whales offload 60M DOGE in 2 days. The downtrend may hit $0.17 before signs of a bullish reversal emerge.
On Friday, May 30, Dogecoin (DOGE) had an 11% decline, marking the most significant loss among the ten largest cryptocurrencies by market capitalization.
The considerable drop in Dogecoin price corresponds with substantial selling activity by whales, as these huge accounts have liquidated 60 million tokens over the past two days.
The current DOGE selloff results from a decline in the overall cryptocurrency market, which has resulted in a loss above $700 million in 24 hours, as reported by Coinglass statistics.
As of the latest update, Dogecoin is trading at $0.204, marking its lowest point since May 10.
Dogecoin Price Plummets As Bulls Cede Control
Dogecoin price is plummeting due to significant selling pressure, resulting in a loss of control by bullish investors.
This selling pressure originates from $21 million in DOGE long liquidations at the current moment.
The 50% increase in Dogecoin’s trading volumes, according to CoinMarketCap, indicates significant selling activity.
Due to the persistent downturn, Dogecoin has executed a bearish breakout from the consolidation area of $0.21 to $0.24.
This leading meme coin has been fluctuating within this range for about three weeks because of market volatility following the capital shift from altcoins to Bitcoin after the latter reached an all-time high.
The current price decline coincides with a bearish crossover between the 20-day EMA and the 200-day EMA.
This typically indicates a reversal of the trend from bearish to bullish and a continuance of the prevailing bearish trend.
The red AO histogram bars illustrate the diminishing short-term momentum as they decrease in size, indicating that bulls relinquish dominance.
The AO has been decreasing since May 10, paralleling a gradual reduction in Dogecoin price.
As the bearish momentum indicated by technical indicators intensifies, Dogecoin’s subsequent support level is positioned at $0.17.
In contrast, the immediate resistance level is situated at the upper limit of the consolidation channel, which is $0.24.
Should Dogecoin decline to $0.17, it will correspond with a recent Coingape research indicating that it requires a 20% drop to $0.179 before the subsequent bullish movement towards $1.
Whales Liquidate 60 Million DOGE
Over the past two days, substantial Dogecoin addresses possessing between 100 million and 1 billion tokens have diminished their holdings from 26.55 billion to 26.49 billion DOGE.
Consequently, these whales have liquidated 60 million tokens in the past two days, amounting to $12 million at the prevailing Dogecoin valuation.
Historical data indicates that Dogecoin whales typically divest before and during market declines, whereas they accumulate during impending significant rallies.
This selling action corroborates the pessimistic technical forecast of a price decrease to $0.17.
In summary, the decline in Dogecoin’s price is attributable to the negative sentiment in the overall market, increasing long liquidations.
Whales have liquidated 60 million tokens within two days, and if historical patterns persist, this behavior may suggest impending declines.
