One of the most famous coins in the world of cryptography, DOGECOIN ($ DOGE), crosses a period of prolonged stagnation and even seems to take a certain momentum.
In recent weeks, whale activity on the Dogecoin network has dropped sharply, lowering almost 88% since mid-November. This significant The drop in whale trading, combined with a few others potentially “not good” for $ Doge Signals, has observers who fear that Dogecoin has entered a lower market.
Recent figures indicate that a potential change in the feeling of the market is underway, with technical signals such as the death cross currently appearing between the market value ratio / value made and the 200 -day mobile average, often a model linked to price reductions. While the price of $ DOGE continues to have difficulties, the need to exceed certain levels of crucial resistance and to reach a own reversal has become very important not only for the downward trend but also for (and especially for) The restoration of the investor confidence in the medal that started as a joke.
Whale activity and the feeling of the declining market
In the past, Dogecoin price movements have been significantly affected by activities involving great holders of cryptocurrency. But now the latest statistics show that transactions involving large amounts of dogecoin have decreased considerably. The number of these transactions has dropped almost 90% since November 2021. This downward trend is not an isolated development. Dogecoin seems to have a drop in overall interest on the part of institutions and individuals with deep pockets.
Whales, which are generally responsible for moving large amounts of assets, can have a key effect on the price of assets like Dogecoin. When they accumulate, they increase the price. When they sell, they lower the price. The amount of activity of whales is similar to the amount of wind produced by a hurricane. The more wind there, the higher the chances of serious damage. Conversely, a calm period generally means no imminent threat of hurricanes. A drop in whale activity could point out that major players are not as confident as they were once in the future price of Dogecoin.
Whale transactions fell while Dogecoin rose. Dogecoin’s price is decreasing and the lack of support for whale transactions could be part of it.
In the difficult league of more dollars, the number of transactions fell to around 5 to 10 in the first quarter of 2023, from 25 to 30 in the last quarter of 2022. And despite a short increase in last month with around 3 At 5 transactions, we are back. Whether it supports or not or not of a bear theory for Doge is not clear.
#Dogecoin $ DOGE It remains in a downward trend, forming lower stockings and lower ups. A break above the keys resistance is necessary to change the momentum! pic.twitter.com/kbomx6rxrg
– Ali (@ali_charts) February 16, 2025
The basin technical indicators
In addition to the slowdown in whale activity, the technical indicators of Dogecoin do not show encouraging signs. A death cross was formed in which the MVRV ratio (market value with the value achieved) crossed its mobile average (MA) below 200 days. Training like this has historically occurred before the drop in high prices. The last two times that has happened, the price of $ Doge has dropped by 26% and 44%, respectively.
#Dogecoin $ DOGE I just saw a death crossroads between the MVRV ratio and its 200 -day MA. The last two times this has happened, prices have dropped by 26% and 44%. pic.twitter.com/g5csltgumj
– Ali (@ali_charts) February 17, 2025
A commonly used indicator to assess the asset assessment is the market value ratio to achieve value (MVRV). Crossroads of death between the MVRV ratio and the 200 -day mobile average (MA) can give us an index on the type of danger that could expect us at the price of an asset, because they represent signals that the market value of The asset is detached more and more from its real value achieved. This type of edifying flag can appear on the graph of a merchant, which suggests that new price reductions may be on the way.
One of the many lowering signals that suggest that major problems are coming to Dogecoin is the formation of the death cross. Recent price movements show a coherent downward trend, with Dogecoin forming a series of lower stockings and lower ups. This model indicates that there is not much purchase interest for $ DOGE, each attempt to rally meeting a stronger sales resistance. The downward trend and the signals he will continue, has a lot of investors to ask questions about the health and potential of $ DOGE.
The need for break
Currently, the Dogecoin price dynamics are lower, and it has a long way to go before going up. To modify the current price dynamics, Dogecoin must first identify several levels of key resistance. This price action should occur for various reasons: softening and possibly reverse the sale pressure, the renewal of the interests of the Dogecoin whales, the solid social media mojo which will simply give people the purchase of token, or all Simply, a market that enthusiasm for Dogecoin has revised as a speculative asset.
If Dogecoin cannot break out soon, it could continue its downward trend and test lower support levels. The lack of support for the whale, associated with what seems to be negative technical signals, leaves the meme room in a very vulnerable space. Admittedly, memes like Dogecoin currencies can be very volatile and are subject to the type of sudden price swings that could send them in an opposite direction. But at present, the downward trend seems to suggest that the path of the slightest resistance is decreasing.
Currently, the future of Dogecoin is unpredictable. If the market atmosphere continues to swing towards caution and that if the concentration of assets among the biggest Dogecoin holders remains moderate, Dogecoin could very well be about to publish another disappointing performance. However, if something is happening to refocus the interest of investors on Dogecoin and if purchase orders come back to the market to exceed certain levels of key price linked to resistance, this could be found on the performance paths of which it enjoyed for most of 2021.
To summarize, the Dogecoin market is currently undergoing a period of significant difficulties. The activity of the falling whales, when seen alongside lower lower technical signals such as the cross of death, strongly indicates that a downward trend is in place difficult to challenge. So that Doge looks at all kinds of momentum, a desire to screen for the levels of resistance of the keys will be necessary, not to mention a renewed fervor for the market in general. Until this happens, the forecast for Dogecoin are at least cloudy, with a significant chance of capitulation of the same, and led to a meticulous examination of the investors paid to look at it when they can.
Disclosure: they are not negotiation or investment advice. Always do your research before buying a cryptocurrency or investing in services.
Follow us on Twitter @nulltxnews To stay up to date with the last crypto, NFT, AI, cybersecurity, distributed IT and Metaversse News!
Image source: meshcube /123RF // Image effects by Colorrcinch