In the last 24 hours, large holders have sold 270 million Dogecoin, valued at around $70 million. This influx of supply poses potential risks for further declines unless demand rises substantially. However, some market analysts remain hopeful for a recovery based on DOGE's historical price patterns.
Recent developments stemming from Donald Trump's policy decisions have significantly impacted the cryptocurrency market, with Dogecoin among the hardest hit. Following the imposition of heavy tariffs on China, Canada, and Mexico by the former US president, a sharp correction ensued for many leading digital assets.
As a result, Dogecoin's price dropped to $0.21, according to CoinGecko, and it currently hovers around $0.25, marking a 16% decline over 24 hours.
While optimists view this drop as a possible precursor to a market rebound, certain indicators suggest a bearish outlook could persist in the near term. Prominent analyst Ali Martinez pointed out on social media platform X that a significant sell-off by whales—totaling 270 million DOGE—has increased the circulating supply of the coin.
This move may drive prices further down if demand does not match the increased supply. Such actions could also lead smaller investors to sell in alarm, exacerbating the decline. Martinez further indicated a recent bearish crossover involving DOGE’s Market Value to Realized Value (MVRV) ratio and its 30-day Simple Moving Average, forecasting a potential steep price drop.
Despite recent downturns, some market experts maintain an optimistic stance regarding Dogecoin's future. For instance, analyst Trader Tardigrade references past patterns where DOGE experienced substantial post-retracement gains: a 59.76% retracement in 2016 was followed by a 9,221% increase, and a 56.2% pullback in 2020 led to a 30,693% surge. Other analysts, such as KALEO and Crypto Tony, argue that the current price level presents a valuable entry point for long-term gains. KALEO describes the present DOGE valuation as highly favorable, whereas Crypto Tony expresses anticipation for a potential rise to $0.34 as an investment opportunity.
The developments regarding Dogecoin continue to spark discussions among market participants about whether the currency will sustain its momentum or face continued downward pressure.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.