Dogecoin (DOGE), the popular meme coin, is currently facing significant price pressure, with a potential for further declines in the wake of a recent whale movement. Over the past 24 hours, DOGE has dropped by more than 18%, a sharp decline that coincides with the broader crypto market crash. The latest downturn follows the movement of $59 million worth of Dogecoin by a whale, sparking concerns about a potential sell-off.
Whale Movement Signals Potential Sell-Off
On-chain data from Whale Alert revealed that a significant investor moved 200 million DOGE to the Binance exchange. Such movements are often seen as a bearish indicator, as they suggest the possibility of large-scale selling. When whales offload large amounts of cryptocurrency, it can put immense selling pressure on the market, potentially leading to further price drops. As of now, DOGE’s price is in danger of dropping to the crucial support level of $0.20, a level analysts are closely watching for signs of further weakness.
Crypto analyst Kevin Capital weighed in on the situation, noting that if DOGE falls below $0.26 on a weekly close, it could signal more trouble ahead. However, he emphasized that the current price decline could be part of a natural market pullback. Capital pointed out that the correction had been anticipated for weeks but was exacerbated by external factors, such as the Federal Reserve’s hawkish stance and the looming risk of a U.S. government shutdown.
Dogecoin Price: What’s Next?
Despite the current bearish sentiment, analysts remain hopeful for a potential bullish reversal. Crypto analyst Master Kenobi pointed to the 2021 bull run as a historical precedent, suggesting that a similar recovery could occur in January 2025. In December 2020, the market experienced a crash, with Bitcoin losing 30% of its value and Dogecoin dropping by 55%. However, by January 2021, both assets rebounded sharply, setting the stage for DOGE’s all-time high (ATH) of $0.73 in May 2021.
💡 Bitcoin vs DOGE Back in January 2021
— Master Kenobi (@btc_MasterPlan) December 20, 2024
244 days after Bitcoin's halving, on January 11, the market faced a painful bloodbath, just as it does now.
Bitcoin suffered a 30% loss, while DOGE was already unbearable, down by 55%. The bear market was everywhere, and people were… https://t.co/0GJzCq6gi0 pic.twitter.com/gvLtU6Guqx
With this historical context in mind, there is optimism that Dogecoin may bounce back to new highs in the coming months. Kevin Capital previously predicted that DOGE could retreat to between $0.26 and $0.28 before staging a strong recovery and potentially breaking its ATH.
Also Read: Dogecoin’s Bullish Surge: Will DOGE Hit $1 and Beyond by 2025?
As the market navigates through this volatile period, all eyes remain on Dogecoin’s price action and whether it can recover from its current decline.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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