Dogecoin Drops 20% as Whales Sell 1.32 Billion Coins

On April 9, Dogecoin (DOGE) faced significant volatility, with its price struggling to surpass the $0.15 resistance level. The cryptocurrency's price hovered around $0.14, marking a 20% decline over the past week. Analysts have identified $0.11–$0.124 as crucial support levels if the bearish trend persists. The price prediction for April 9 indicated a range between $0.1256 and $0.1446, with an average price of $0.1351. This volatility is partly due to the surge in stablecoin inflows, which have impacted the broader cryptocurrency market.

Technical indicators for Dogecoin show weak momentum, with the price failing to break resistance and the Relative Strength Index (RSI) stuck below 50. This suggests that the cryptocurrency is currently in an oversold condition, but the lack of bullish conviction raises doubts about a sustained rally. The falling wedge pattern observed in the charts is typically bullish, but without a confirmed breakout, the market remains cautious. The Volume Weighted Average Price (VWAP) is slightly above the current price, indicating that Dogecoin is trading below its average weighted value, which is another bearish signal.

Despite the current challenges, there are several factors that could drive a rally in Dogecoin. Plans for a spot DOGE ETF and the possibility of Dogecoin being included in a crypto strategic reserve are among the potential catalysts. However, for Dogecoin to achieve significant gains, it will need to overcome technical resistance and gain broader market support. The long-term price case for Dogecoin hinges on its utility and adoption, rather than hype or community-driven speculation. While Dogecoin has a strong community and cultural relevance, it still lacks the smart contract functionality of Ethereum or the enterprise appeal of XRP. Its fast transaction speed and low fees could support a case for micro-payments or retail adoption in emerging economies, but utility at scale must be proven before even a $1 price target becomes tenable.

In the past two days, investors with an account balance of at least 1 billion have sold over 1.32 billion coins. This significant sell-off by whales, coupled with rising global volatility and bearish sentiment, has contributed to the downward pressure on Dogecoin's price. The overall supply of stablecoins into exchanges has also increased, which could indicate that traders are protecting their positions from forced liquidation or that holders are converting their volatile crypto assets into stablecoins.

The price prediction for Dogecoin in 2025 suggests a range between $0.10 and $0.18, with an average price of $0.14. This indicates a relatively stable outlook for the cryptocurrency, but it also highlights the challenges it faces in breaking through resistance levels. The long-term upside for Dogecoin relies on real-world use cases and adoption, which could drive sustained growth at institutional levels. However, without major catalysts such as ETF approvals or significant endorsements, the cryptocurrency may continue to face technical resistance and market hesitation.