Dogecoin investors have experienced a pause in its advance at around $0.2 as optimism among large traders and other market players wanes. Notably, DOGE has failed to surpass the $0.2 threshold significantly since late March. On the contrary, the crypto dipped down to $0.1719 during the first week of April.
Although Dogecoin showed some improvement during the writing period, it hasn’t met investors’ expectations in terms of performance. The chart suggests a potential bearish trend for the cryptocurrency, while on-chain analysis indicates that whales are offloading their DOGE holdings. Simultaneously, there has been an uptick in short-term investors holding Dogecoin, exposing them to potential sell-offs.
Dogecoin Whales Are Selling
Based on information from the on-chain analysis tool Santiment, there’s been a significant drop in the number of Dogecoin holdings between 10 and 100 million coins since the start of this month. These wallets have collectively let go of approximately 333 million DOGE during this period.
Whales significantly influence crypto market trends and investor sentiment, as demonstrated by the decrease in Dogecoin’s price. For instance, a decline in whale holdings has resulted in a 18% price drop for DOGE from $0.2262 on March 28 to $0.1854 within the past day.
Source: Santiment
New information from IntoTheBlock reveals a 6% growth in the DOGE inventory of short-term investors during the last ten days. Although this might suggest a bullish outlook for these traders, their behavior as short-term holders poses a possible price decrease for the cryptocurrency. In contrast to long-term investors and whales who keep their assets for extended periods, short-term traders typically hold their investments for only 1 to 3 months. As a result, they carry a higher risk of selling their assets quickly, which could trigger a sharp decline in DOGE‘s price.
What’s Next For DOGE?
Currently, DOGE is priced at $0.1970 during this writing session, marking a 4% rise over the previous 24 hours. Yet, for DOGE‘s bullish trend to persist, it’s crucial that an overwhelmingly positive outlook takes hold among the major traders or whales. Conversely, significant selling from these influential investors could shift the market sentiment negatively, potentially causing a decline in DOGE’s price.
Recently, IntoTheBlock pointed out that Dogecoin encountering resistance near $0.20 in its attempt to reach a new annual peak. Importantly, more than 32,000 wallets contain approximately 3.78 billion DOGE at a loss at this price point. A surge above this barrier might lead to a significant number of sellers offloading their coins, potentially hindering further price growth.
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2024-04-12 03:11