The biggest meme coin is among the worst-affected cryptocurrencies from the broader market correction, with its price crashing by 17% over the past week.
The recent whale sell-off could have also negatively impacted Dogecoin.
The renowned analyst, using the X handle Ali Martinez, revealed that large Dogecoin investors have dumped more than one billion tokens in the last week alone. The stash equals approximately $165 million (calculated at current rates). Following that move, this cohort of investors now holds less than 23 billion DOGE, representing around 15% of the asset’s circulating supply.
Efforts of that type are generally seen as bearish since they increase the amount of coins on the market, and that could be followed by a price pullback (assuming demand doesn’t react accordingly). The massive sell-off may also spread panic across the community and prompt smaller players to cash out, too.
Shortly after, Martinez touched upon Dogecoin again. He said the OG meme coin has been trading within a rising channel since March, but recently broke below the bottom of that structure at $0.18. This means that DOGE has lost support and could be headed for a more violent crash, potentially dropping as low as $0.11.
Despite the downtrend, some market observers remain optimistic that not all is lost for Dogecoin for this cycle. X user Chandler reminded that November has been a strong month for the meme coin in recent years, predicting that history might repeat itself.
Elon Musk also infused some positivism. The world’s wealthiest man (who happens to be a firm proponent of DOGE) said in 2021 that SpaceX “is going to put a literal Dogecoin on the literal Moon.” Several hours ago, he referred to that tweet, stating, “It’s time,” but also placed a laughing emoji at the end.
Meanwhile, DOGE’s Relative Strength Index (RSI) indicates that a rebound could be incoming. The technical analysis tool measures the speed and magnitude of recent price changes, helping traders assess potential reversal points. It ranges from 0 to 100, and ratios below 30 are interpreted as bullish, as they suggest DOGE might be oversold. Currently, the RSI hovers around that mark.
The post 1,000,000,000 DOGE in 7 Days: Could Dogecoin’s Bear Market Be Starting? appeared first on CryptoPotato.
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