Dogecoin is under new sell pressure, as whales have sold 40 million $DOGE within the last 24 hours. The action follows as the major memecoin continues to lose major support levels, making it seem vulnerable to further decline.
Dogecoin is currently trading at $0.2289, 14% lower than it was within one week, and has a market capitalization of $34.49 billion.
Whale Trades Contribute to Selling Pressure
The previous day, we saw large holders taking tens of millions of tokens out of the market. This has exerted pressure on the price, although $DOGE is showing signs of weakness in shorter timeframes.
The volume of trading has also reduced tremendously. Volume has declined 51.74% in the last 24 hours to $1.91 billion, which points to lower activity and liquidity compared with the past few weeks.
Key Support and Resistance Levels in Play for Dogecoin
Technically, Dogecoin is testing a significant level of support at $0.220. Failure to maintain this mark, analysts believe, will cause the price to sink to as low as 0.21 before it attracts fresh buying attention.
On the positive side, the resistance is observed at $0.240. To turn the tide in favor of the bulls, a breakout beyond this level would be required. At this point, the trend is conservative, as the token keeps hitting lower lows in the four-hour chart.
The Future Looks Uncertain
The Relative Strength Index (RSI) of Dogecoin is 42 on the daily, which indicates that the asset is not in an overbought state; it is in distress.
Although volatile actions will typically be driven by the movements of the whales in the short term, the other market conditions will influence the subsequent phase of price action of the $DOGE.
Investors are keenly monitoring whether Dogecoin will be able to stabilize its prices at the present or its second leg down is imminent before it is likely to rebound.
As the memecoin market calms down after weeks of enormous speculation, Dogecoin’s ability to support itself could either lead to new momentum or prolong its downturn in the near future.
