Dogecoin (DOGE) is struggling to find its footing. After sliding over 7% last week, the price now hovers around $0.24. This dip signals more trouble ahead as technical indicators flash red flags.
Whale Activity Crashes
Whale transactions have taken a nosedive. According to Santiment, DOGE transactions worth over $100,000 have plummeted from 20,200 in early November to just 6,200. Even bigger transactions, over $1 million, dropped from 3,490 to 850. This sharp decline suggests whales are losing interest, a bearish signal for the broader market.
Technical Indicators Point South
The technical outlook doesn’t offer much hope. DOGE has lost over 30% since mid-January, slipping below the critical 50% price retracement level of $0.27. The Relative Strength Index (RSI) stands at 48, below the neutral 50 mark, signaling increased selling pressure. Adding to the woes, the Moving Average Convergence Divergence (MACD) shows a bearish crossover, hinting at a continued downward trend.
Key Support Levels to Watch
If DOGE’s decline persists, the next major support level sits at $0.18. A break below this could trigger a deeper correction, wiping out gains from the recent bull run.
Final Thoughts
Dogecoin’s current setup paints a bearish picture. Falling whale activity and weak technical indicators suggest more downside risk. Unless buying momentum picks up soon, DOGE could face a steeper decline in the coming weeks.
