Crypto Quill

Dogecoin holders are on edge as the meme coin struggles to hold above $0.20. On February 7, DOGE slipped 0.46% to trade at $0.24, largely due to the broader market correction. Bitcoin’s inability to stay above $100K has triggered a ripple effect across the crypto space. But there’s more at play here—whale activity has dropped significantly, raising questions about whether DOGE’s recent downturn is just the beginning.

Major Investors Are Pulling Back

Dogecoin’s whale transactions have taken a major hit. Large-scale DOGE movements, specifically those exceeding $100,000, have shrunk dramatically.

According to on-chain data from Santiment:

• The number of weekly DOGE transactions above $100K dropped from 20,200 to just 6,200.
• Transactions over $1 million plummeted from 3,490 to 840.

This decline suggests that major investors are either cashing out or stepping away from Dogecoin altogether. Historically, whale activity has been a strong indicator of price movements. A resurgence in big transactions could hint at a reversal, but for now, the trend is pointing downward.

Chart Signals Hint at a Bigger Drop

DOGE is following a pattern that traders recognize all too well—the double top. This classic reversal setup forms an “M” shape on the charts, typically signaling an upcoming decline.

Here’s why this is significant:

• The price has already broken below the $0.26 neckline, confirming the bearish outlook.
• If this pattern continues, a further 29% decline could send DOGE toward $0.174.
• The immediate supports to watch are at $0.22 and $0.173.

Short-term traders might see a slight bounce as the price retests the $0.26 breakdown level. However, unless buyers step in aggressively, the downward pressure could intensify.

What’s Driving the Selling Pressure?

There’s no single reason behind Dogecoin’s decline, but a few key factors are playing a role:

• Bitcoin’s Stumble: BTC’s failure to hold above $100K has cast uncertainty across the crypto market. Altcoins like DOGE tend to follow BTC’s lead.
• Declining Whale Interest: Large holders appear to be taking profits or moving to other assets, weakening DOGE’s market structure.
• Technical Breakdown: The double top pattern is a clear bearish indicator, giving traders a reason to short the asset.

Can DOGE Buyers Reclaim Control?

Despite the bearish outlook, all hope is not lost for Dogecoin. Bulls have one critical task—reclaim the $0.26 level. If they can push DOGE back above this resistance, it would invalidate the bearish pattern and restore confidence in the uptrend.

Until then, the risk of falling below $0.20 remains a serious concern. If whale activity doesn’t pick up soon, DOGE could be looking at more downside in the weeks ahead.