Dogecoin facing pressure as large investors reduce holdings and trading in derivatives increases
June 8, 2026
Dogecoin, a cryptocurrency known for its meme-inspired origins, is currently hovering around $0.0850 on Monday, showing a slight 5% increase from its recent low of $0.0800 on February 6. However, recent data suggests that large investors holding between 100 million to 1 billion DOGE have started to reduce their positions, leading to a decrease in supply and putting downward pressure on the token’s price. This shift in ownership is evident in the fact that wallets with significant amounts of DOGE have decreased their share of total circulating supply to 22.95%, marking the lowest level in five months.
Interestingly, data indicates that wallets with over 1 billion DOGE, predominantly held by exchanges, now make up 47.06% of the circulating supply, up from 45.71% on April 18. While this increase in holdings by exchange-linked addresses does not necessarily translate to immediate selling pressure, the simultaneous decrease in ownership by large non-exchange holders is impacting market sentiment and contributing to the overall downward trend in DOGE.
Furthermore, the Open Interest in DOGE futures has also seen a decline, dropping from $1.76 billion to just over $1 billion. This decrease in speculative interest suggests a waning appetite for risk among retail traders, which could have implications for the token’s future price movements.
On the technical side, Dogecoin is currently trading below $0.0879 after a recent recovery following a Dragonfly Doji candlestick formation around the $0.0800 level. While this rebound may indicate a temporary defense of the support zone, the token is still facing resistance at $0.0879. Additionally, the Relative Strength Index (RSI) is showing signs of improvement from oversold conditions, indicating a potential reversal in downside momentum. However, the Moving Average Convergence Divergence (MACD) remains in negative territory, suggesting ongoing bearish pressure.
Looking ahead, if DOGE fails to maintain above $0.0800, it could pave the way for further downside towards the $0.0741 and $0.0654 levels. On the upside, breaching the $0.0879 resistance is crucial for buyers, with additional resistance seen around the $0.1000 psychological level, which aligns closely with the 50-day Exponential Moving Average (EMA). Overcoming these resistance levels will be essential for a shift in the medium-term bias for DOGE.
