Dogecoin (DOGE) has fallen 8% recently to the current levels of about $0.17. The fall comes amid giant whale sell-offs that grossly overshadow any accumulation efforts, which has implications for the cryptocurrency’s future. Market analysts are now closely observing support levels, especially the important $0.16 level.
Whale Activity Impacts Price Action
Some sources say that whale activity contributes significantly to the price of Dogecoin. Having reached the point of $0.48, DOGE set a series of lower lows, and therefore this is an extension of a downtrend caused by whales who sold as opposed to buying in recent times.
Accumulating about 1.7 billion DOGE in the past 72 hours, these whales sold over 1 billion DOGE and decreased their total accumulation from about 73 billion to 71.5 billion.
The recent sell-off cast doubts on whether any buying pressure would be sustainable in the face of rising sell activity. Without new whiplash from whales, analysts say a turn higher above the $0.20 level now appears less probable.
Market Conditions and Trading Volume
The entire cryptocurrency market has been under tremendous pressure, with a total market capitalization loss of $200 billion over 24 hours. Most assets have been affected by this fall, including DOGE, which has now dipped below major support levels.
The trading volume for Dogecoin has, however, risen by 115%, indicating growing interest from traders. This increase in activity could be indicative of a potential holding phase for DOGE, a trend that is typically seen before breakout rallies.
Despite the increased trading volume, active addresses have fallen from the peak of 412,319 to around 114,960, indicating reduced retail involvement. The overall attitude appears to favor a “buy-the-fear, sell-the-greed” approach, but it is difficult to sustain the price at $0.16 and higher.
Future Outlook for Dogecoin
The future of Dogecoin is unknown. Certain analysts believe there are opportunities for buying, but others recommend that the absence of continuous whale accumulation and declining retail interest can result in even more losses. If the price will not be able to place a good level of support at $0.16, then there are chances for even more losses.
In short, today’s price fluctuations of Dogecoin illustrate the thin line between whale influence and market mood. Investors would be required to keep a sharp eye and search for trends coming from the cryptocurrency market.
