Dogecoin Faces Continued Downtrend Amid Weak Market Sentiment
Dogecoin (DOGE) is struggling to hold support near $0.24 on Tuesday. The overall crypto market shows cautious sentiment. DOGE has dropped 21% from last week’s high of $0.3072. If negative sentiment continues, the price may fall further.
Whales Reduce Holdings and Network Activity Declines
Large Dogecoin holders, known as whales, have been selling their coins in recent months. According to Santiment data, wallets holding 10 million to 100 million DOGE now own 15.86% of the total supply. This is down from 16.85% in July.
Smaller whales with 1 million to 10 million DOGE increased their holdings in July and August. However, their share peaked at 7.3% on September 8 and has since dropped to about 7.18%. This shows growing caution among investors.
Network activity is also low. Daily active addresses fell to 55,000 on September 22, down from over 500,000 in June. The high activity in June helped push DOGE’s price to $0.2873 in July. Lower activity now suggests less demand and adoption.
Technical Indicators Point to Further Decline
Dogecoin trades just above its 50-day Exponential Moving Average (EMA) at $0.2387. Technical signals suggest more downside risk.
- The Moving Average Convergence Divergence (MACD) shows a sell signal since Monday.
- The Relative Strength Index (RSI) is at 45 and falling, indicating weakening buying pressure.
Key support levels to watch are the 50-day EMA ($0.2387), 100-day EMA ($0.2259), and 200-day EMA ($0.2192). If the price breaks below these, the decline could accelerate.
However, if buyers step in and push DOGE above the 50-day EMA, a recovery toward last week’s peak of $0.3072 is possible.
