Dogecoin is hitting yearly lows against Bitcoin! Can the Bulls find a way to revive DOGE prices?
After the recent market decline, Dogecoin has experienced a slight rebound. But whales continue to sell their assets. However, this recovery faces potential obstacles as DOGE’s value reaches a yearly low compared to Bitcoin. This indicates that Dogecoin’s volatility has decreased significantly compared to its counterpart coins. These conditions could trigger currently profitable addresses to begin liquidation, potentially increasing selling pressure.
DOGEBTC hits yearly low.
There has been a noticeable change in Dogecoin (DOGE) trading sentiment over the past four hours. Sellers have been aggressively closing out positions, especially after DOGE got stuck at lows around $0.075. Coinglass data highlights liquidations of $108,000 in Dogecoin and $107,000 in short positions.
However, Dogecoin’s rise may face challenges as it fails to keep up with market volatility. According to TradingView data, the DOGEBTC rate hit a yearly low of 0.00000182. Additionally, selling pressure from whales is noticeable, slowing recovery momentum.
A large-scale trade involving DOGE whales was observed today. Over 635 million tokens (worth $52 million) were moved to Binance and Robinhood. According to a report by Whale Alert, 300 million DOGE worth $24.62 million were recently transferred from an unknown wallet to the exchange via Binance. Another major transaction that occurred eight hours ago involved the movement of 151.68 million DOGE (worth $12.49 million) from Robinhood to an undisclosed wallet.
Previously, two significant transactions were made from unidentified wallets to Robinhood, transferring $102.27 million and $82.08 million in DOGE worth $8.4 million and $6.74 million, respectively.
Most of these transactions targeted cryptocurrency exchanges, indicating that whales may be dumping their holdings during price declines. This suggests that stronger resistance is likely to form against Dogecoin in the future.
What’s next for DOGE pricing?
Dogecoin witnessed a support level at $0.075, indicating that buyers intervened and bounced the price from that level. This led to the formation of a bear trap. However, they are aiming to defend against a surge above the EMA20 trendline. At the time of writing, the price of DOGE is trading at $0.0835, up more than 1.1% from yesterday’s rate.
The bulls are currently attempting to sustain the recovery, but these efforts are expected to face significant resistance at the 20-day exponential moving average (EMA) and around $0.093.
If Dogecoin’s price reverses from this level, the price could potentially fall to the $0.07 level. This price range may attract some buying interest, but a continued bearish trend could push the price lower to $0.061.
For a bullish reversal, it is important for bulls not only to push the price higher, but also to hold it above the resistance zone in the $0.093-$0.11 range. Achieving this would mark the start of a new upward trend and could potentially lead the price towards $0.15.