Dogecoin lingers in $0.17-$0.20 range as a whale transfers 200M DOGE to OKX, signaling potential sell-off pressure.
Since the $0.25 pendulum high on May 11, Dogecoin (DOGE) has been in a state of stagnation. At the time of publication, the price of Dogecoin is $0.17, a 32% decrease from its previous trading level. The daily trading volume on July 14 amounted to $936 million. Nevertheless, the price is at risk of further decline as 200 million DOGE tokens are transferred to exchanges, increasing the probability of a surge in selling activity in the short term.
The price of Dogecoin remains stagnant as shorts continue to dominate
The price of Dogecoin has been fluctuating between $0.16 and $0.20 for the past two weeks, as it has been trading within a consolidation. This top meme coin has experienced a substantial decrease in volatility, indicating that buyers and vendors are uncertain. Nevertheless, the price tests’ support at the lower boundary of the consolidation range suggests that there is a possibility of a surge in selling activity, as indicated by past trends.
The Dogecoin market is dominated by short sellers, as evidenced by Coinglass’ data on the derivatives market. This suggests that most futures traders are wagering against Dogecoin’s price performance and expect it to decline.
The long/short ratio has decreased to 0.95 and has remained below 1 for the past four days. The fact that short sellers are maintaining their positions despite the recent decline indicates that they anticipate an even greater decline in the price.
Nevertheless, the most recent CoinGape analysis has revealed a bullish bottom pattern in Dogecoin, which suggests a potential 84% price increase. The analysis also observed that DOGE whale holdings have reached a record high, indicating that large holders, who typically purchase during bottoms, are optimistic.
The Dogecoin price forecast for 2025 and beyond indicates strength, even though short-term trends indicate weakness.
Floods Exchanges 200 Million DOGE
The quantity of DOGE tokens entering exchanges has experienced a significant increase, as indicated by data from Whale Alert. Two hundred million DOGE, valued at over $35 million, were transferred from an unknown wallet to the OKX exchange on June 14. This action could indicate that a significant participant is actively seeking to sell Dogecoin, which could exacerbate the current situation despite the fact that the price has not made any substantial progress.
This inflow is accompanied by a significant increase in the Age Consumed Metric, which suggests that a substantial quantity of previously unmoved coins have been transferred to exchanges. This surge typically exhibits selling behavior as large holders realize profits and abandon their positions.
If history repeats itself, the Dogecoin price may trend higher once long-term holders’ selling pressure subsides. Nevertheless, pending this event, it may continue to experience weakness within the current consolidation range until sufficient demand to absorb the sold coins.
In summary, Dogecoin is currently at a critical juncture, as its price is stagnant amid consolidation. The close consolidation may be the result of the dominance of short sellers. In the interim, it is possible that certain substantial holders are considering selling after 200 million DOGE was transferred to exchanges, and the Age Consumed metric experienced a significant increase.
