Dogecoin News Today: Dogecoin's Sell-Off: Bearish Downtrend or Setup for Next Bull Run?

Dogecoin (DOGE) is facing a wave of uncertainty after large holders offloaded 440 million tokens over a 72-hour period, sparking concerns about the asset's short-term trajectory. The sell-off, reported by crypto analyst Ali Martinez, has pushed the price to $0.19 at press time, reflecting a 2% daily loss and a 6% weekly decline, according to a CryptoPotato report. On-chain data shows a sharp drop in whale holdings, with wallets holding between 10 million and 100 million DOGE reducing their stakes significantly. These wallets now hold approximately 23.48 billion DOGE, down from earlier levels, the CryptoPotato report added.

The market reaction has been amplified by technical indicators signaling weakness. Trader Tardigrade's analysis highlights a breakdown from a symmetrical triangle pattern on the daily timeframe, a move that confirms a shift below key trendlines and suggests continued downside pressure. The 4-hour chart also reveals a false breakdown below $0.178, with prices recovering temporarily but failing to hold earlier resistance near $0.21, the CryptoPotato report noted. Meanwhile, the Relative Strength Index (RSI) has entered oversold territory, raising questions about whether buyers will step in to stabilize the price.

Whale activity has been a focal point, with $26.8 million in DOGE transferred from a dormant wallet to Binance and another 15.115 million DOGE ($2.95 million) moved to exchanges, according to a TradingView note. Analyst Cantonese Cat noted bullish signs earlier this month, including a cycle-high volume-weighted average price (VWAP) and Fibonacci level support. However, the recent selling pressure has overshadowed those indicators, with over 500 million DOGE moved by large holders in a single week, the CryptoPotato report said.

Despite the short-term volatility, some analysts see long-term potential. CryptoPotato reported that Dogecoin follows recurring cycles of sharp declines followed by sideways consolidation and eventual sharp rallies. The first cycle saw gains of over 5,800%, while the second peaked at $0.74 in 2021. A third cycle may now be forming, with unconfirmed targets between $5 and $7, the CryptoPotato report suggested.

Adding to the narrative, the Dogecoin Treasury will soon be publicly traded, a development that could attract institutional investors and benefit retail holders, TradingView observed. However, the timing of this event coincides with the recent sell-off, raising questions about whether it will provide a catalyst for a rebound.

The market's mixed signals highlight a tug-of-war between bearish distribution and potential bullish momentum. While the immediate outlook remains fragile, the asset's historical patterns suggest that patience may still be rewarded-for now.