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Dogecoin Whales Offload 310M DOGE — Price Drops Into Oversold Territory

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Victor Olanrewaju
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Key Takeaways

  • Dogecoin price dropped to $0.25 as large holders got rid of coins valued at $75 million in two days.
  • The memecoin has failed to hold crucial support, with the RSI showing that it is now oversold.
  • Should whales continue to distribute, then DOGE correction could extend to a three-month low.

February started on a sour note for many cryptocurrencies, and like other assets in the market, Dogecoin (DOGE) price bled. In the last 24 hours, DOGE has fallen roughly by 20%.

As a result, the price fell to $0.24, a level last seen in November 2024. This drop followed Donald Trump’s trade wars, where he raised import tariffs on certain countries, prompting retaliatory tariffs from those affected.

Beyond the broader economic impact, Dogecoin whales also contributed to the memecoin’s decline as they offloaded large amounts of the cryptocurrency, and added to the selling pressure.

Dogecoin Key Holders Sends It Into Freefall

On Jan. 17, Dogecoin price rallied to $0.41, showing signs that it could retest the 2024 high it hit after Trump’s election. However, that was not the case as the coin lost hold of the $0.30 support toward the end of last month.

According to Santiment, Dogecoin whales also added fuel to this fire. For instance, on Feb. 1, the balance of addresses holding between 100 million and 1 billion DOGE was 23.37 billion.

This metric refers to the total amount of DOGE held by large investors or entities. When whales accumulate, it indicates confidence and potential price stability or increment. On the other hand, when they offload their holdings, it can trigger selling pressure and price decline.

Dogecoin whales add tot the coin' selling pressure
Dogecoin Whales Balance | Credit: Santiment 

As of this writing, that figure has decreased to 23.06 billion. This indicates that whales have dumped 310 million coins, worth approximately $75 million.

DOGE Price Prediction: Deeper Drop Ahead

Following the decline, Dogecoin price had fallen into the oversold region, according to the Relative Strength Index (RSI) shown on the daily chart.

The RSI measures momentum and also tells if a cryptocurrency is oversold or overbought. Readings above 70.00 indicates that an asset is overbought and oversold when the RSI is below 30.00.

As seen below, the RSI has continued to hit lower values. Furthermore, the Bull Bear Power (BBP) is in the negative region.

The negative reading of the BBP indicates that bears have more strength than bulls. Therefore, it is likely for Dogecoin price to keep falling, especially as bulls failed to defend the $0.30 support.

Should this trend continues, then DOGE might continue to hit lower lows. Using the Fibonacci retracement levels,  the daily chart reveals that Dogecoin price is on the verge of dropping below the 0.382 support floor.

Historically, when prices sink below this Fib level, it opens doors to an extended correction. If validated, then DOGE might soon plummet t0 $0.18, which will represent a 3-month low for the memecoin.

Dogecoin price analysis as whales sell
DOGE/USD Daily Chart | Credit: TradingView 

However, if Dogecoin whales refrain from intensifying selling pressure, and instead, increase accumulation, the trend might change.

In that scenario, DOGE price might rally to $0.40 at the 0.786 Fibonacci level. But for that to happen, bulls have to mount a strong defense at $0.30 as soon as the price rebounds from this oversold zone. If not, capitulation might occur.

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Victor Olanrewaju

Victor is a reporter at CCN. Currently residing in Lagos, Nigeria, Victor focuses on writing news and providing readers with on-chain and technical analysis. Before he joined CCN, he worked as an analyst at BeInCrypto and AMBCrypto. He published several pieces at these outlets detailing investor behavior and analyzing price action across different cryptocurrencies. Victor holds a Bachelor's degree in Physics from the University of Ibadan. With his background, he finds it seamless to break down technical terms into simpler words while keeping readers engaged.
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