Dogecoin News Today: Whales Cash Out as Dogecoin's Rising Wedge Signals 45% Drop Risk

Dogecoin (DOGE) has experienced a notable decline in recent weeks, with its price dropping over 24% from a multimonth high of $0.28 on July 21. This downward movement has prompted large holders—commonly referred to as "whales"—to offload substantial amounts of DOGE, signaling a lack of confidence in a near-term price rebound. On-chain data indicates that wallets holding $10–$100 million in DOGE have decreased by 6% since late July, suggesting a distribution phase among major investors [1]. A recent transaction, flagged by Whale Alert, revealed that 900 million DOGE—valued at over $200 million—were transferred to Binance by an unknown whale. Such activity is typically interpreted as a sign of short-term bearish sentiment [1].

Market metrics also reflect weakening investor interest in DOGE. Futures open interest (OI) has declined to $3.24 billion, down from a peak of $5.35 billion on July 22, representing an 8% drop over the past week [1]. This contraction in OI indicates reduced speculative positioning and fewer traders betting on short-term price increases. Similarly, the number of daily active addresses on the Dogecoin network has fallen sharply to 58,000 from a peak of 1.65 million in Q4 2024, signaling diminished network activity and potentially waning retail interest [1].

From a technical standpoint, DOGE is forming a bearish pattern known as a rising wedge, which typically signals a potential price reversal to the downside. The price is currently retesting the lower trendline of this wedge at $0.218. A breakdown below this level could trigger a further decline, with a technical target of $0.12—representing a potential 45% drop from current levels [1]. The relative strength index (RSI) also supports this bearish outlook, having fallen to 49 from overbought levels of 85 earlier in July, indicating a steady buildup of bearish momentum [1].

On the other hand, some analysts suggest that whale activity could be more nuanced. For instance, a large Dogecoin whale recently moved 52.9 million DOGE—worth nearly $12 million—from Binance to a newly created wallet [2]. This transaction, executed in two tranches, has raised questions about the whale’s intentions. While such consolidation could indicate long-term accumulation, the timing of the move coincided with a recent price bounce to $0.2205, suggesting it may also reflect opportunistic positioning [2]. Analysts remain divided on the implications of such activity, with some noting that similar movements have occurred prior to recoveries from local lows [2].

Despite the bearish signs, on-chain data also shows that whales have accumulated more than 680 million DOGE in August, indicating that long-term investor confidence remains intact [3]. Additionally, the broader cryptocurrency market has been affected by macroeconomic pressures, including hawkish central bank policies and trade policy developments. These factors have contributed to the recent pullback in DOGE’s price, which has now fallen to the $0.228 level [3]. Traders are now closely monitoring whether this level can hold as support or if further declines toward $0.16 are likely [1].

The price volatility has also influenced the broader meme coin market. For example, a new project called Maxi Doge, described as Dogecoin’s “frustrated but ripped cousin,” has raised over $1.5 million in a month. This development reflects investor optimism about the potential for another wave of meme coin activity, possibly extending into 2025 [3].

Source:

[1] Dogecoin whales de-risk as DOGE price is in danger ... (https://cointelegraph.com/news/dogecoin-whales-de-risk-doge-price-dropping-45-percent)

[2] Dogecoin Whale Empties Binance: 52.9 Million DOGE ... (https://u.today/dogecoin-whale-empties-binance-529-million-doge-leave-worlds-largest-crypto-exchange)

[3] Dogecoin Price Crashes 5% After Another Failed Breakout ... (https://finance.yahoo.com/news/dogecoin-price-crashes-5-another-125406604.html)