Dogecoin News Today: Whales Fade as Dogecoin's Inflationary Weakness Exposed

Dogecoin (DOGE) is under increasing bearish pressure, with price signals and on-chain metrics suggesting the potential for a 45% decline. Recent market activity has shown a significant offloading of DOGE by large holders, or whales, signaling growing risk aversion. Wallets holding $10-$100 million in DOGE have decreased by 6% since late July, according to Santiment data. This trend is compounded by a transfer of 900 million DOGE, worth over $200 million, to Binance by an unidentified whale, raising concerns about short-term selling pressure [1].

Derivatives data also indicates reduced speculative activity in the DOGE market. Futures open interest (OI) has dropped to $3.24 billion, down from a peak of $5.35 billion on July 22. This 8% decline since Sunday highlights a weakening in trader confidence and fewer bets on short-term price increases [1]. Meanwhile, 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 and 674,500 in July. This drop signals reduced user engagement and potentially waning retail interest [1].

From a technical standpoint, DOGE is forming a rising wedge pattern, a classic bearish reversal formation. A breakdown below the key support level at $0.218 would likely confirm this trend and point to a price target of $0.12, representing a 45% drop from current levels. The relative strength index (RSI) has also weakened, declining to 49 from overbought conditions at 85 on July 20, indicating that bearish momentum has been steadily gaining traction [1]. Analysts emphasize that DOGE must hold above the $0.19-$0.20 range or the 100-day and 200-day moving averages to avoid further declines toward $0.16 [1].

The recent correction in DOGE has been exacerbated by broader market sentiment. On Monday, DOGE dropped 10.6% in the last 24 hours, mirroring a downturn in the wider crypto market following a sharp correction in Bitcoin and Ethereum. Markets experienced nearly $900 million in liquidations, with Ether traders bearing the brunt at $320 million in forced unwinds and Bitcoin accounting for $277 million in losses. Dogecoin saw another $90 million in liquidations combined with Solana and XRP [3]. This comes after a sharp rise following Federal Reserve Chair Jerome Powell's address, which hinted at potential rate cuts, and a subsequent re-evaluation of risk assets [2].

Inflationary characteristics of DOGE further complicate its outlook. As a meme coin with no inherent utility or scarcity-driven tokenomics, DOGE is inherently inflationary. This structure means its value is heavily reliant on speculative interest and growing adoption, factors that appear to be waning as the market matures. Analysts caution that unless adoption and demand increase significantly, DOGE will likely continue to face downward pressure [2].

With broader macroeconomic uncertainties and a lack of fundamental drivers, DOGE’s price trajectory remains precarious. The on-chain and technical signals suggest that further downward movement is highly probable unless there is a significant shift in investor sentiment or macroeconomic conditions. As markets await key economic data and further guidance from the Federal Reserve, the outlook for DOGE and similar speculative assets remains clouded [1].

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] Why Dogecoin (DOGE) Sank Today (https://www.nasdaq.com/articles/why-dogecoin-doge-sank-today)

[3] Ether, Dogecoin, Bitcoin Plunge Sees $900M in Bullish ... (https://www.coindesk.com/markets/2025/08/26/ether-dogecoin-bitcoin-plunge-sees-usd900m-in-bullish-bets-liquidated)