Dogecoin News Today: Dogecoin at Crossroads: Whales Sell, Institutions Accumulate as $0.20 Support Tested

Dogecoin (DOGE) experienced a sharp decline of 8% earlier this week, with prices dropping to $0.25 after hitting a multi-month high of $0.28 on July 21. The volatility followed a wave of selling pressure from large holders, or whales, who offloaded significant volumes of DOGE during the downturn. On-chain data from Santiment revealed a 6% decline in wallets holding $10–$100 million DOGE since late July, while Whale Alert flagged a $200 million transfer of 900 million DOGE to Binance, signaling heightened short-term risk aversion among institutional investors ^[1].

Technical indicators reinforced bearish sentiment. DOGE's price retested the lower trendline of a rising wedge pattern at $0.218, a formation that historically signals a 45% potential drop to $0.12 if the support level is breached. The relative strength index (RSI) fell to 49 from overbought conditions at 85 earlier in July, reflecting a steady build-up of bearish momentum ^[1]. Futures open interest (OI) also declined by 35% to $3.24 billion in less than two months, indicating reduced speculative positioning and weaker demand for short-term price rallies ^[3].

However, whale activity shifted toward accumulation in September, with large investors acquiring 158 million DOGE despite the 10.86% drop in 24 hours. This contrasted with the immediate price weakness, suggesting long-term institutional confidence in DOGE's fundamentals. The move stabilized prices at $0.25, preventing further erosion toward critical support levels at $0.20, which aligns with the 200-day moving average. Analysts noted that the accumulation could act as a buffer against deeper declines, though short-term volatility remains elevated ^[2].

On-chain metrics highlighted waning retail engagement. Daily active addresses on the Dogecoin network fell to 58,000, a stark drop from 1.65 million in Q4 2024 and 674,500 in July, signaling reduced network activity. This decline coincided with falling money flow index (MFI) readings below 40, a sign of weak buying pressure and prolonged correction risks. Traders warned that the lack of dip-buying at lower prices could extend the downturn unless institutional buyers reinforce support ^[3].

A potential catalyst for long-term optimism emerged with the filing of the first DOGE ETF, DOJE, by asset manager REX-Osprey. The fund aims to provide traditional investors with exposure to Dogecoin through the stock market, but approval remains pending. For now, optimism is muted by ongoing whale selling and weak derivatives activity, with open interest in DOGE futures declining to $3.27 billion-a 35% drop since July ^[3].

The mixed signals underscore a critical juncture for DOGE. While whale accumulation and technical support at $0.20 offer some stability, bearish momentum from declining open interest and active addresses persists. Traders are closely monitoring whether the $0.20 level holds, as a break below could trigger a 15% drop to $0.178. Conversely, a rebound above $0.229 could pave the way for a test of $0.27–$0.28, aligning with the 50-day and 20-day moving averages ^[2].