Dogecoin (DOGE) Market Performance Plummets by 36.43% as Whales Drive Market Downward

Dogecoin (DOGE) has experienced a sharp decline of 17.64%, a major blow to the asset's market performance. This dramatic fall has compounded its monthly losses

Dogecoin (CRYPTO: DOGE) experienced a sharp decline over the past 24 hours, dropping by 17.64% to trade at $0.0826. This sell-off comes amid a broader downturn in the cryptocurrency market.

Over the past month, DOGE has seen a total sell-off of 36.43%, hitting lower lows on the price chart as the bearish momentum builds. This extended period of decline has erased a majority of the gains made by the meme coin in early 2023.

A look at the price chart shows that DOGE began the year trading around $0.07. As buying pressure picked up and several cryptocurrencies rallied to start 2023, DOGE experienced a strong uptick, reaching highs of $0.15. However, this rally was short-lived, and the meme coin encountered selling pressure at higher levels.

As a result, DOGE began a steep sell-off, dropping below $0.12, $0.10, and eventually reaching lows of $0.078. After briefly consolidating around this lower support level, another round of sell-orders hit the market, causing a further sell-off.

Now, as DOGE trades at $0.0826, it appears to be forming lower lows on the price chart. This technical pattern suggests that the bearish momentum is continuing and that the path of least resistance for the meme coin remains to the downside.

Breaking down the large sell-off, it appears to be largely driven by a few key whales a term used to describe high-net-worth investors who hold large amounts of cryptocurrency. According to data from Coinglass, over the past 24 hours, these whales a total of 270 million DOGE.

This massive sell-off by whales is putting immense downward pressure on the price of Dogecoin thisの時間. Typically, when whales sell in such large quantities, it can create a chain reaction in the market, leading to further sell-offs and a sell-off mentality among smaller retail investors.

As a result of the heavy selling by whales, smaller retail traders are likely selling their long positions in an attempt to lock in profits or mitigate their losses. This broader selling pressure is contributing to the continued decline in the price of DOGE.

A look at the derivatives market also reveals signs of bearish sentiment. The Funding Rate for DOGE is now negative, indicating that short traders are paying a premium to long traders a sign of bearishness. Additionally, the Open Interest (OI) for DOGE has seen a sharp decline of 30.08%, now at $2.53 billion.

In other words, traders are closing their positions and withdrawing liquidity from the market, adding to the downward momentum.

To summarize the technical analysis of Dogecoin (CRYPTO: DOGE) over the past 24 hours:

Bearish trend: DOGE has been experiencing a sell-off of late, dropping significantly from highs of $0.15 seen earlier this year.

Lower lows: As the sell-off continues, DOGE is now marking lower lows on the price chart, indicating bearishness.

Whale activity: A major factor contributing to the sell-off appears to be large sell-offs by whales, who are offloading hundreds of millions of DOGE tokens.

Derivatives bearish: The Funding Rate for DOGE is shifting into the negative territory, while OI is declining sharply, both indicating a bearish sentiment among derivatives traders.

Liquidation cascade: The bearish environment is causing significant liquidations of long traders, while short traders are largely being spared by the market.