Dogecoin (DOGE): Decrease in Whale Transactions and Death Cross Warning
The price of Dogecoin (DOGE) has recently shown a downward trend, raising concerns about its future prospects due to a significant reduction in whale transactions and bearish signals indicated by technical analysis. While some experts anticipate further declines, others analyze the potential for a strong upward movement if certain resistance levels are breached.
Whale Transactions Decrease by 88%, Decreased Market Interest?
According to blockchain network data analysis, large holders (whales) of Dogecoin appear to be gradually withdrawing from the market. This reduction in activity is leading to a decrease in trading volume, which can impact overall market liquidity.
Since November 2024, large transactions (whale transactions) of Dogecoin have reportedly decreased by about 88%.
Data from IntoTheBlock indicates that transactions exceeding $100,000 have decreased by 25.68%, amounting to a weekly total of 30.45 billion DOGE, while transactions exceeding $1 million plummeted from 680 to just 25.
Currently, whales are trading an average of 2.42 million DOGE per week, and total trading volume has shrunk from $575 million to around $100 million to $200 million.
This decrease in trading volume coincides with a drop in Dogecoin's price, which fell from $0.476 to $0.267 between November 2024 and February 2025. This suggests that large investors may be reducing their Dogecoin holdings or delaying investments until the market conditions improve.
"Death Cross" Occurs, Indicating Further Downside Potential?
Technical analysis indicators also support the possibility of weakness in Dogecoin. Currently, DOGE's Market Value to Realized Value (MVRV) ratio remains below the 200-day moving average, signaling a potential continuation of the bear market.
Historically, prices tend to decline by 26% to 44% following the occurrence of a "death cross."
Given the current price of Dogecoin ($0.266), there is also a risk of further declines.
However, cryptocurrency analyst Trader Tardigrade asserts that Dogecoin has potential for a strong rebound after a short-term correction. He predicts that if DOGE breaks through resistance, it could rise to $7 within five months.
Dogecoin’s Historical Patterns Indicate Potential for Major Upsurge
Another cryptocurrency analyst, DOGECAPITAL, suggests that Dogecoin's price pattern resembles that of 2017, indicating a possible imminent major rise.
His analysis shows that Dogecoin has a tendency to follow an accumulation pattern followed by surges every 1,442 days, suggesting that the market may be in a prelude to a significant upswing.
The surges in Dogecoin’s price have historically been driven by increasing interest from retail investors, media coverage, and speculative trading psychology.
DOGECAPITAL mentions the possibility of Dogecoin breaking its all-time high, predicting that it could aim for $10 by 2025.
What Does the Future Hold for Dogecoin?
Currently, Dogecoin is experiencing downward pressure in the short term, yet some analysts foresee upward potential. A powerful bullish movement could begin if the key resistance level is breached, with the potential for prices to skyrocket based on market interest and external factors such as media coverage and investment sentiment.
Summary of Dogecoin Price Outlook
- Whale Transactions Decrease by 88% → Potential Liquidity Weakening
- Death Cross Occurs → 26-44% Additional Downside Potential
- If Key Resistance is Breached, Potential to Rise to $7 Within 5 Months
- Price Pattern Similar to 2017 → Long-term Potential of $10
The direction of Dogecoin in 2025 is likely to be heavily influenced by market interest and investor sentiment, making the breach of resistance a crucial turning point. Investors are advised to take a cautious approach and continuously monitor technical analysis and market trends. 🚀
- This text does not constitute investment advice or financial recommendations.Cryptocurrency investment involves significant risks, and the responsibility for investment decisions rests solely with the investor.
