In light of the recent cryptocurrency market decline, Dogecoin encountered significant selling pressure at $0.22, leading to a 20% price decrease to $0.18. Experts are now assessing the situation, as some indicators are showing substantial gains for the well-known meme token.

Indicators Signal a Decline in Dogecoin

Analysis of Dogecoin's 4-hour chart revealed the formation of a double top pattern, which has heightened bearish sentiment among investors. While Bitcoin is currently undergoing a correction pre-halving, there are speculations about whether this trend will impact altcoins in a similar downward manner. In contrast to other major cryptocurrencies, Dogecoin experienced a notable surge in March. During the fourth week of the month, the cryptocurrency witnessed a significant increase from $0.122 to $0.228, a rise of 86.8%.

According to a recent report by cryptocurrency analytics platform Santiment, this surge was primarily driven by the re-entry of large dormant whale wallets into the market, without the usual fear of missing out (FOMO) associated with market peaks. Additionally, data shows a slight uptick of 0.21% in the number of wallets holding DOGE over the past fortnight.

Current Status of DOGE

The average age of Dogecoin investments decreased from 510 days to 416 days in just five weeks, suggesting increased activity involving long-held cryptocurrencies. Nevertheless, amid the current market downturn, the price of DOGE dipped below the $0.22 mark and showcased a double top bearish pattern. With a 9% intraday decline, sellers broke past the neckline support at $0.195 decisively. Should the selling pressure persist, there is a possibility of Dogecoin's price dropping by an additional 8% to hit the combined support level of the rising trend line and the 38.2% Fibonacci retracement level at $0.17.

This article was originally published on COINTURK NEWS: Dogecoin Faces Significant Selling Pressure