Dogecoin under pressure as large holders offload 750 million tokens

Key takeaways

• Dogecoin (DOGE) is trading near $0.068 on Wednesday, staging a modest recovery after touching a fresh yearly low of $0.066 in the prior session.
• According to Santiment data, whale addresses holding between 100,000 and 100 million DOGE have collectively sold 750 million tokens since November 3.
• A drop below $0.065 could open the door to deeper losses, while buyers would need to push past $0.077 and $0.079 to brighten the coin's technical picture.

Dogecoin (DOGE) is trying to bounce modestly on Wednesday after falling to its lowest point this year. Still, ongoing selling by whales and softening market signals suggest the meme coin remains exposed to further downside.

The token is changing hands near $0.068, slightly above Tuesday's yearly trough of $0.066, as buyers seek to steady the cryptocurrency after its most recent slide.

On-chain data, however, indicates that large investors have been trimming their positions, amplifying downward pressure at a moment when broader market sentiment stays fragile.

With Dogecoin trading under its key moving averages, the $0.065 support zone may decide whether the coin stabilises or extends its larger correction.

Dogecoin whales sell 750 million DOGE as confidence weakens

Major Dogecoin holders have continued to cut their positions, adding to the meme coin's recent price softness.

Based on Santiment's Supply Distribution data, three groups of whale wallets have collectively shed roughly 750 million DOGE since November 3.

These groups cover wallets that hold between 100,000 and 1 million DOGE, those with between 1 million and 10 million tokens, and larger addresses holding between 10 million and 100 million DOGE.

The fall in holdings across these tiers suggests that substantial market participants have been lowering their exposure instead of adding during the downturn.

For Dogecoin, the latest selling comes alongside a broad decline that drove the cryptocurrency to a new yearly low.

Wider on-chain metrics reinforce the cautious view on Dogecoin. CryptoQuant's market summary shows that both DOGE spot and futures markets feature large whale orders and elevated trading activity.

The platform further notes sell-side dominance in both markets, implying that selling pressure continues to outpace buying interest.

The presence of big orders combined with heightened activity can signal that major players are actively repositioning in times of volatility.

The softness in both spot and derivatives markets is especially notable as it shows that bearish sentiment is not confined to one trader category.

Dogecoin technical outlook: DOGE hits new yearly low of $0.066

Dogecoin's technical picture remains negative after it dropped to a new yearly low. At the time of writing on Wednesday, DOGE trades near $0.068, pulling back a little after reaching $0.066 in the previous session.

Despite the small bounce, the cryptocurrency still trades under its major Exponential Moving Averages (EMAs), pointing to sellers controlling the broader trend.

The 50-day EMA is close to $0.079, and the 100-day EMA is around $0.081.

Meanwhile, the longer-term 200-day EMA sits at roughly $0.088, forming another significant resistance layer above the current market price.

Trading below all three moving averages shows the weakness in Dogecoin's technical setup and suggests that recovery efforts could run into renewed selling.

Momentum gauges also back the bearish view. The daily Relative Strength Index (RSI) has fallen into the low-30s, pointing to weak buying momentum and hinting that DOGE is nearing oversold territory.

At the same time, the Moving Average Convergence Divergence (MACD) is slightly negative below the zero line, showing that bearish momentum persists.

Weak momentum combined with overhead resistance indicates that Dogecoin's recent bounce may stay limited unless buying demand picks up.

Dogecoin faces a key technical test as its price nears the $0.065 support level. This horizontal support marks the next major downside threshold after Tuesday's drop to $0.066.

If DOGE fails to hold $0.065, sellers could regain momentum and push the cryptocurrency toward new yearly lows.

A decisive break below that level would confirm the broader bearish trend and imply that the recent recovery attempt has failed.

Despite the prevailing bearish conditions, Dogecoin could stage a short-term rebound if buyers start accumulating near current prices.

The first resistance is around $0.068, where the token is presently trading. A sustained move above that level could lead buyers to aim for the next horizontal resistance at $0.077.

Beyond that, the 50-day EMA near $0.079 stands as another important hurdle. A breakout above the 50-day EMA would strengthen Dogecoin's short-term technical picture and could pave the way for a recovery toward the 100-day EMA at $0.081.

Further resistance lies at the 200-day EMA near $0.088, followed by the stronger horizontal barrier around $0.102.