Whale Activity Spurs Selling Pressure on Dogecoin Amid Market Downturn
On July 23, the short-term moving average fell below the long-term moving average, a phenomenon commonly referred to as a “death cross.” This has significantly increased selling pressure on Dogecoin, primarily driven by whale activity. This sudden surge in sales has led to a notable imbalance between supply and demand, heavily favoring sellers, as indicated by on-chain metrics.
The drop in prices has been accompanied by a marked increase in transaction volumes. The charts clearly show large transaction volumes in line with heightened selling pressures from whale accounts. One striking figure that underscores the current market situation is the movement of 5.73 billion DOGE within the last 24 hours.
Despite the short-term pessimistic outlook suggested by these metrics, a reversal point may be approaching. Historically, strong selling pressure, especially from whales, has often marked the beginning of a market bottom and potential recovery.
The Relative Strength Index (RSI) for Dogecoin is currently hovering around 50, indicating that the asset is neither overbought nor oversold. If buyers step in, this could signal an imminent trend reversal. The moving averages also present mixed signals.
Dogecoin’s ability to remain above critical support levels such as the 100 EMA, coupled with recent price movements showing resilience above $0.125, might indicate underlying strength despite the death cross suggesting a downward trend.
Read more Dogecoin: Key Demand Zone May Provide Crucial Support for Cryptocurrency
Furthermore, Dogecoin’s large and active community frequently challenges traditional technical analysis, often leading to unexpected surges.
Important Notice: The content presented in this article is intended for informational purposes only and should not be interpreted as financial advice. Coinshibainu.com bears no responsibility for any investment decisions made relying on the information contained herein. It is highly recommended to consult with a qualified expert or financial advisor before making any investment decisions.
