A sharp drop in Dogecoin prices with the sale "Whales" Its holdings: does this herald a new decline?

Witness the price Dogecoin DOGE Strong fluctuations in the recent period, with the digital currency having difficulty breaking the $0.2 barrier since the end of last March. On the contrary, it saw a sharp decline in the first week of April, reaching a low of $0.1719.

Although it has partially recovered from this decline, Dogecoin's performance remains below many investors' expectations.

Chart analysis suggests that the cryptocurrency may be stuck in a downtrend, while on-chain data shows that “whales” (large wallets) are selling their Dogecoin holdings.

The sale of “whales” announces a new decline

According to data from on-chain analytics platform Santiment, “whale” wallets containing between 10 million and 100 million DOGE have seen a sharp decline in their coin holdings since the beginning of this month. The holdings of these wallets decreased by 333 million Dogecoins during this period.

“Whales” often play a major role in determining price direction and sentiment in the cryptocurrency market.

Their sale of Dogecoin was reflected in the price of the currency. The decrease in total holdings of the “whales” caused the price of Dogecoin to drop by 18%, from $0.2262 on March 28 to $0.1854 in the last 24 hours.

Increase in Short-Term Trader Holdings is a Negative Indicator

And it showed Data IntoTheBlock also reported a 6% increase in Dogecoin holdings from short-term traders over the past 10 days. Although this may indicate an upward trend among short-term traders of the currency. However, the nature of their exchanges suggests a possible drop in their price.

Unlike "whales" and long-term investors, short-term traders are known to hold assets for a short period of only one to three months. This leaves their holdings vulnerable to an upcoming sell-off, which could cause prices to fall.

What are the Dogecoin predictions?

Currently the price is trading DOGE coin At $0.1970, up 4% in the last 24 hours.

Continued upside requires positive sentiment to evolve to include the majority of large investors. Intensive selling operations by these individuals could lead to a change in sentiment among investors and a further decline in the price of the currency.

“IntoTheBlock” platform spotted Recently, Dogecoin faced significant resistance at the $0.20 level as it was on track to hit record yearly highs. Over 32,000 digital addresses hold a total of 3.78 billion Dogecoin, suffering losses at this price level.

Therefore, the currency surpassing the $0.20 level could prompt a large portion of these investors to sell off their holdings, which could hurt any price rise.