Dogecoin (DOGE) Price Poised to Break Out as Whale Withdrawals Reduce Sell Pressure

Dogecoin holders have moved a striking $150 million off exchanges, reducing sell pressure and setting the stage for a potential breakout.

A recent analysis of on-chain data reveals that Dogecoin (DOGE) holders have collectively moved a staggering $150 million worth of the meme coin off cryptocurrency exchanges. This large-scale withdrawal has significantly reduced the sell pressure on DOGE, setting the stage for a potential breakout.

As a striking development, Dogecoin holders have moved an impressive $150 million off exchanges, a move that could reduce sell pressure and set the stage for a breakout. With resistance at $0.20 in sight, DOGE’s price could surge as whale activity strengthens bullish sentiment.

The supply of DOGE on these networks was notably reduced following a large withdrawal amounting to $150 million. Such outflows typically indicate that holders are removing their assets from exchanges, possibly with the intention of holding them for the future, which could lead to a decrease in sell pressure.

If this setup plays out, we could see a volatility squeeze, where prices level out before experiencing an unexpected spike. Dogecoin, according to the latest price chart, has shown strong momentum, reaching recent highs before a significant drop. At its current price of about $0.192, DOGE has managed to hold onto its gains despite the recent drop, as reported by U.Today.

Testing the $0.20 Resistance Level Could Lead to Gains

Immediate resistance will be encountered by the asset as it attempts to cross the $0.20 level, which could lead to further gains if breached.

However, a failure to break through this barrier could lead to DOGE dropping back to the support levels at $0.15 and $0.12. The data also shows that there were a total of 4,150 major transactions in the last 24 hours, along with a high volume of 27.7 billion DOGE.

Whale Activity Signals Accumulation, Suggesting Bullish Potential

Large transaction volumes of this magnitude often indicate institutional or whale activity, which can drive or stabilize prices depending on their intentions. Overall, the price outlook for Dogecoin appears bullish, considering the reduced supply on exchanges and the continuing large transactions, which suggest a strong possibility of accumulation.

As DOGE manages to hold its ground at $0.155, there’s a chance for it to gather momentum and break through the resistance at $0.20. On the other hand, a drop below $0.155 could indicate further consolidation.