DOGE Whales Dive Deep: Is a 45% Plunge Imminent? 🐬💰

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Key takeaways:

  • Dogecoin whales offload large volumes of DOGE, signaling risk aversion.

  • Declining open interest and daily active addresses signal less demand for DOGE.

  • DOGE’s rising wedge pattern signals a bearish reversal with a 45% price drop potential.

Dogecoin (DOGE) price has plummeted by over 24% after reaching a multimonth high of $0.28 on July 21. In this grand spectacle of market chaos, the largest holders of the memecoin have begun to unload their DOGE like sailors abandoning a sinking ship, clearly lacking faith in any imminent recovery. 🚢🌊

Dogecoin onchain metrics hint at further losses

Investor interest in DOGE seems as tepid as a lukewarm cup of tea, according to derivatives data. Dogecoin’s futures open interest (OI) has dwindled to $3.24 billion from its peak of $5.35 billion on July 22. An 8% decline since Sunday suggests that fewer traders are willing to bet on short-term price hikes, much like a poker player folding a mediocre hand. 🃏💔

Wallets holding between $10-$100 million DOGE have seen a 6% reduction since late July, as per Santiment data. This decline mirrors a notable transaction flagged by Whale Alert, where 900 million DOGE, valued at over $200 million, was transferred to Binance by an anonymous whale. This move has raised eyebrows and concerns about impending sell pressure. 🐳🚨

When large holders start distributing an asset while prices are dropping, it often signals that they foresee more declines on the horizon. It’s like seeing dark clouds gathering before a storm. ☁️🌧️

Moreover, the number of daily active addresses on the Dogecoin network has plummeted to 58,000, a far cry from the peak of 1.65 million in Q4/2024 and 674,500 in July. This drop suggests a significant wane in network activity, reflecting a decline in retail interest. 📉👥

A decrease in active addresses is a clear indicator of lower user engagement on the network, possibly signaling a loss of retail enthusiasm. It’s as if the party has ended, and the guests are leaving one by one. 🎉🚪

DOGE rising wedge pattern targets $0.12

From a technical standpoint, sell pressure on DOGE could gain significant downward momentum if it breaches below a rising wedge pattern. In the world of technical analysis, a rising wedge is a bearish reversal chart pattern characterized by two converging trend lines connecting higher highs and higher lows. This convergence suggests that the bulls are losing steam. 🐻💨

Currently, DOGE price is testing the support provided by the lower trendline of the wedge at $0.218. If this support fails, it could trigger a deeper drop in price, with a technical target of the wedge at $0.12, representing a 45% decrease from current levels. 📉📉

The relative strength index (RSI) also shows signs of weakness, having fallen to 49 from overbought conditions at 85 on July 20. This indicates that bearish momentum has been steadily accumulating. 📉📊

According to CryptoMoon, DOGE price must hold above the $0.19-$0.20 zone, or the 100-day and 200-day moving averages, to avoid further losses toward $0.16. It’s a delicate balance, much like walking a tightrope over a chasm. 🧗‍♂️💥

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2025-08-27 14:44