- Whale holdings dipped significantly over the week.
- A section of the market was hopeful of a quick recovery to $0.20.
The world’s largest memecoin Dogecoin [DOGE] rose 2.11% in the last 24 hours of trading, spurring hopes of reversing the corrective action seen over the past week.
The dog-themed token plunged 14% in value in the last seven days, in line with the broader downturn among Ethereum [ETH]-based memecoins, data from CoinMarketCap showed.
As of this writing, it was exchanging hands at $0.18, with market participants anticipating a quick recovery to $0.20 and beyond.
The negative price action followed massive sell-offs by large holders of the coin. According to AMBCrypto’s analysis of Santiment’s data, number of wallets holding between 1,000 to 1 million coins dipped significantly over the week.
The drop in holdings came alongside jump in transactions worth more than $100,000, confirming that whales were dumping DOGE en masse.
Source: Santiment
However, a section of the market was hopeful of a quick rebound from this dip. A crypto trader shared their analysis highlighting DOGE’s resilience during the correction period. They also seemed confident of a bounce to $0.20 in the days ahead.
The trader’s optimism might not be unfounded. Using Hyblock Capital, AMBCrypto noticed a sharp increase in the number of long positions taken by whales on Binance, suggesting bullish expectations from DOGE.
Source: Hyblock Capital
What this meant was that the sell-offs discussed earlier could be a shakeout of over-leveraged longs.
To better understand DOGE’s next moves, AMBCrypto investigated some key technical indicators through TradingView.
The Relative Strength Index (RSI) ascended from the neutral 50 level, typically interpreted as a bullish signal.
Realistic or not, here’s DOGE’s market cap in BTC terms
The On Balance Volume (OBV) though, made lower highs and lower lows over the week. The resemblance with DOGE’s price trend indicated a likely continuation of the downtrend.
The Moving Average Convergence Divergence (MACD) line crossed below the signal line, suggesting that DOGE might dip further.
Source: Trading View