Dogecoin is once again at a critical stage as its largest holders reduce their exposure, indicating potential further risks for the market.
Reduction of Holdings by Large Dogecoin Holders
Dogecoin has fallen more than 24% since hitting $0.28 on July 21, with whales taking steps to reduce their holdings. Data from Santiment shows that wallets containing between $10 million and $100 million in DOGE have dropped by 6%. This reduction suggests that large holders are limiting their exposure amid the current downturn.
Technical Analysis and Price Decline Risks
From a technical perspective, Dogecoin’s price action is shaped by a rising wedge pattern. If the price breaks below the key support at $0.218, this could lead to a drop to $0.12, marking a 45% decline. Indicators, such as the relative strength index (RSI), reflect weakness, increasing the likelihood of further declines.
Consolidation Prospects and Potential Breakouts
Despite the bearish signals, some analysts point out that Dogecoin may be in a short-term consolidation phase. Prices are fluctuating between $0.20 and $0.24, indicating that a sharp move in either direction could occur. Analysts suggest that a break above $0.23–$0.24 could open targets like $0.25–$0.30.
The current conditions surrounding Dogecoin raise concerns; however, there are chances for a breakout if investor interest increases and whale selling subsides.
