Key Notes
- The 50-day and 200-day Dogecoin EMA prices formed a “Death Cross,” confirming the weakening momentum.
- DOGE whales have offloaded approximately 1.05 billion DOGE, worth over $180 million, over the past week.
- Some analysts remain optimistic despite the sell-off, predicting an 800% rise for DOGE in the current market cycle.
The world’s largest coin, Dogecoin (DOGE), has fallen under a strong bearish grip, falling 7% over the past week and is currently flirting with $0.18. Furthermore, the daily trading volume for DOGE fell by 51% and currently stands at $1.34 billion. Market experts believe that the Dogecoin price is currently in a difficult situation.
Dogecoin price tests final support before crash
Crypto analyst Ali Martinez highlighted that $0.18 is a key support level for Dogecoin price. According to Martinez, maintaining this level could pave the way for a potential rebound towards $0.26, or even $0.33 in the short term.
Dogecoin price tests crucial support | Source: Ali Martinez
Additionally, the Dogecoin price chart clearly highlights increasing selling pressure with signs of obvious weakness. DOGE issued a major bearish signal as its exponential moving averages (EMA) formed a death cross.
This crossover occurs when the 50-day EMA falls below the 200-day EMA, confirming weakening bullish momentum. This development suggests that Dogecoin may be increasingly vulnerable to broader market downturns. As investor confidence weakens, analysts warn of increasing volatility that could put further pressure on the asset’s price.
Dogecoin price chart forms death cross | Source: TradingView
Additionally, on-chain data indicates that whale investors have started dumping large volumes of DOGE. Over the past week, whales have sold approximately 1.05 billion DOGE, valued at over $180 million.
Notably, addresses holding between 10 and 100 million DOGE began reducing their positions on October 27, offloading approximately 800 million DOGE.
Dogecoin Whale Sale | Source: Santiment
Investors still optimistic about DOGE rally to $1.70
With the crypto market currently on a downward slope, bears currently have the upper hand. However, some market analysts remain optimistic.
Crypto market analyst Bitcoinsensus still believes that Dogecoin price rally could start from here, while projecting exponential gains from here. According to the analyst, historical DOGE price trends indicate a repeated uptrend, with previous rallies seeing gains of 300% and 500%.
DOGE Price Eyes Exponential Rally | Source: Bitcoinsensus
The current cycle, they noted, could extend this trend further, with projections pointing to an 800% increase. Bitcoinsensus has set a target price of around $1.70 for DOGE if the trend continues to unfold.
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Bhushan is passionate about FinTech and has a good flair for understanding financial markets. His interest in economics and finance draws his attention to the new emerging markets of Blockchain technology and cryptocurrencies. He is continually in the process of learning and remains motivated by sharing his acquired knowledge. In his free time, he reads thriller novels and sometimes explores his culinary skills.
