Dogecoin remains stable at $0.16 as large holders sell 3 billion tokens
Dogecoin seems to have reached a turning point, with its price managing to hold steady at the $0.16 support level despite recent selling pressure from crypto whales. The latest data shows that Dogecoin futures open interest has declined by more than 20% in the past two weeks, indicating weakening interest from market buyers.
A market analyst pointed out that over 3 billion DOGE tokens were offloaded by large holders, leading to accelerated bearish momentum in the market. Despite this, Dogecoin experienced a 2.2% increase on November 9th, reaching $0.179. This uptick coincided with a slowdown in the correction trend in the broader crypto market, particularly as Bitcoin remained stable above the $100,000 support level.
The recent price action for Dogecoin showed multiple rejections at the $0.16 support level, suggesting strong demand at this price floor. The current price is inching towards a resistance level of $0.188, pointing to a potential bullish breakout. However, derivatives data indicates a decrease in speculative engagement, with open interest in Dogecoin futures dropping by 23% in the same period.
Market analysts have observed a cooling trend in on-chain data, with large Dogecoin holders reducing their positions. The movement of over 3 billion DOGE from whale-controlled wallets signifies significant selling activity by high-value investors. This behavior is seen as profit-taking or risk reduction by these big players rather than accumulation.
The support zones for Dogecoin price have also shown signs of weakening, with lower buying activity around $0.16 and a lack of liquidity below that until $0.07. This suggests that if bearish pressure persists, Dogecoin could experience a further retracement to lower levels. While the current price is at a crucial juncture, with a potential breakout above $0.20 indicating a strong resistance level and a possible push towards higher price levels.
Analyzing the long-term channel pattern for Dogecoin, it is evident that the coin has been fluctuating within two parallel lines since March 2010. The bottom trendline has historically acted as a key accumulation zone for buyers, leading to significant uptrends after reversals from this level. If history repeats, Dogecoin could see a substantial surge if it breaks above the $0.20 resistance level.
On the flip side, if the price breaks below the bottom trendline, it could lead to further selling pressure and an extended correction trend. Overall, Dogecoin’s price movement is closely watched by traders and analysts, with potential for both bullish and bearish scenarios depending on key support and resistance levels.
