The cryptocurrency market is witnessing significant movements, particularly concerning Dogecoin (DOGE). Recent analytics reveal that large holders are altering their positions, which may hint at future price trends for this popular meme coin. As DOGE faces pressure, it appears increasingly vulnerable to dropping below the crucial $0.20 threshold.
Current Behavior of Dogecoin Whales
Analysis from Santiment indicates that substantial Dogecoin holders, also known as whales, are significantly offloading their holdings. Whales holding between 10 million and 100 million DOGE have seen a decline in their total supply since mid-July, where they represented about 16.85% of DOGE’s total circulation.
This sell-off has continued, as these holders currently make up roughly 16% of the overall DOGE supply. The timing of these sales correlates with the downturn in DOGE prices, suggesting a strategic move by these investors to mitigate potential losses and secure profits.
Notably, DOGE peaked at approximately $0.27 in July, but the persistent downtrend hints at a possible risk of falling below the psychologically significant $0.20 barrier. The overall sentiment in the crypto market, especially concerning Bitcoin’s performance, further exacerbates the bearish outlook for Dogecoin. Bitcoin itself has struggled following its recent all-time high (ATH) of $124,000 reached last month.
Despite the negative trends among whales, potential catalysts for recovery are on the horizon. With expectations surrounding the Federal Reserve’s interest rate decisions, the potential for new liquidity could rejuvenate DOGE’s performance. An anticipated rate cut at the upcoming FOMC meeting may indeed serve as a driving force for price increases.
Moreover, there’s palpable excitement about the upcoming launch of Dogecoin ETFs, which may receive SEC approval next month, signaling a substantial shift for the asset. Notably, industry analyst Eric Balchunas has indicated that REX Osprey could roll out a DOGE ETF under the 40 Act soon.
Market Dynamics: The Wedge Formation
According to a recent post by crypto analyst Brittany Willo, Dogecoin appears to be trading within a wedge pattern. Traders are encouraged to maintain support in the $0.21 to $0.22 range to avoid a significant drop. If the price manages to break out upward, predictions suggest that DOGE could surge to approximately $0.30, marking a notable milestone for 2025.
Additionally, another analyst, Trader Tardigrade, provides a more optimistic outlook. In his observations shared via X, he noted the bullish potential borne from a 5-wave Descending Broadening Wedge formation, suggesting that DOGE could rise to as high as $0.70 and possibly challenge its previous ATH of $0.73.
As of this moment, Dogecoin’s trading price hovers around $0.21. Recent data from CoinMarketCap shows a decrease over the past 24 hours, highlighting the ongoing volatility of this meme-inspired cryptocurrency.
