Crypto: The selling pressure of Dogecoin is intensifying, should we expect the worst?
Dogecoin (DOGE) is currently experiencing strong selling pressure, largely attributed to the activity of crypto market ‘whales.’ While the short-term outlook appears bearish, some indicators suggest a potential turnaround.
Increased selling pressure driven by whales
The activity of large DOGE holders, commonly referred to as ‘whales,’ has intensified in recent days. On July 23, the short-term moving average crossed below the long-term moving average, a signal generally interpreted as bearish by analysts.
This selling pressure has resulted in a marked imbalance between supply and demand, as confirmed by on-chain data.
Transaction volumes have significantly increased, reaching a peak of 1,032 transactions over seven days on July 20, 2024. More strikingly, 5.73 billion DOGE changed hands in the last 24 hours, highlighting the scale of the ongoing movement.
Surprise rebound and speculations on DOGE’s future
Despite these short-term negative signals, the history of the crypto market suggests that such periods of strong selling pressure can precede a rebound. In fact, these phases of capitulation often mark the end of a bearish cycle and the beginning of a new bullish dynamic.
Against all odds, Dogecoin saw a notable rise on July 26, 2024, with a 5.2% increase at 2:40 AM. This volatility fits within a broader context of renewed interest in memecoins, as investors seek high-potential assets in an uncertain market.
Dogecoin’s evolution remains closely tied to investor sentiment and the overall dynamics of the crypto market.
While major cryptos struggle to maintain key support levels, DOGE might stand out, backed by its loyal community and its unique status in the crypto ecosystem.
