- DOGE price falls 7% in a week, now testing critical $0.18 support zone.
- Whales have sold 1.05B DOGE worth $180M in the past seven days.
- DOGE’s 50-day EMA crossed below the 200-day EMA, forming a Death Cross.
Dogecoin (DOGE), the world’s leading meme-based cryptocurrency, has dropped by 7% over the past week and is trading near $0.18. Trading volume has decreased sharply by over 50%, falling to $1.34 billion. Market experts view DOGE as being at a critical price level that may determine its next move.
Crypto analyst Ali Martinez noted that $0.18 is a crucial support level. If this level holds, DOGE could bounce toward $0.26 or even $0.33.
However, if it fails, a further drop may follow, pushing the price down to $0.165. The analyst noted that this support has played a key role in past price recoveries.
At the time of writing, Dogecoin continues to hover above this zone, though signs of weakness are increasing.
Technical Indicators Signal Bearish Trend Ahead
Dogecoin’s price chart has shown a Death Cross a bearish signal where the 50-day Exponential Moving Average (EMA) falls below the 200-day EMA. This event often marks a shift from bullish to bearish momentum, reflecting a decline in investor confidence.
The crossover has come after nearly three months of positive price action. The formation of the Death Cross may lead to increased market caution and a potential price decline if selling continues. Analysts believe this crossover makes DOGE more exposed to downward market trends.
Whale Activity Adds Selling Pressure
Whale investors holding large amounts of DOGE have started selling their tokens. According to Santiment, whales have offloaded approximately 1.05 billion DOGE, valued at over $180 million, within the past week.
Wallets holding 10 million to 100 million DOGE began selling on October 27, resulting in a loss of approximately 800 million DOGE. Meanwhile, larger wallets holding between 100 million and 1 billion DOGE also reduced their positions, selling another 250 million DOGE.
This type of whale behavior is typically observed before extended corrections. Large-scale sales can add pressure on retail investors and increase short-term volatility.
Despite the sell-off, some analysts remain optimistic. Bitcoinsensus believes a historical pattern could push DOGE toward $1.70, though this would need strong market support and renewed demand.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
