Dogecoin (DOGE) Price Dips as Whales Dump 170M Tokens

Dogecoin (DOGE) price saw a notable selloff over the weekend as large holders sold more than 170 million tokens in 24 hours.

The move saw the price slide from $0.24 to around $0.215. The large holder activity came amid a broader decline in meme coins, with Dogecoin falling nearly 10%.

Dogecoin Price Drops As Whales Dump 170M DOGE

Recent data from Santiment shows that large whale investors significantly reduced their DOGE price holdings.

According to the crypto analytics firm, addresses holding between 10 million to 100 million DOGE decreased their supply by about 170 million tokens in a single day.

This reduction lowered their total holdings from 23.91 billion to 23.74 billion DOGE. The heavy selling contributed to Dogecoin reaching a one-week low on May 17.

At the same time, trading volume for Dogecoin dropped by more than 34%, according to CoinMarketCap. The drop in volume indicates weakening demand amid the selloff.

This combination of whale selling and low trading activity may put a cautious outlook on Dogecoin’s short-term price movements.

Derivatives Data Flips Bearish as DOGE Traders Post $7M Loss

The derivatives market for Dogecoin price also posted bearish trends. Data from Rekt reveals that long positions suffered $6.78 million in liquidations over the past 24 hours.

Short positions also sustained losses to a smaller extent, with $1.14 million wiped out. Total liquidations over the day amounted to nearly $7 million, primarily affecting leveraged long traders.

Open interest in Dogecoin futures decreased by 6.9%, settling at $2.58 billion. This drop, equating to over $290 million in closed contracts, suggests diminished trader confidence in a swift recovery.

The overall long-to-short ratio stands at approximately 0.94, indicating slightly more short positions than longs market-wide.

However, experienced traders are still optimistic. Currently on Binance, long positions have a higher ratio than short positions, for a long-short ratio of 3.26.

Professional traders' data seems to signal that the price will recover soon. Still, the general bearish trend is offsetting the short-term bullish market trend.

Dogecoin Technical Analysis As $0.21 Support Holds

Technically, Dogecoin’s price has been moving within a descending channel on the four-hour chart. It recently found support near $0.21 and bounced slightly but remains vulnerable. A breakdown below this support level could push prices down to $0.17, reversing recent gains made after Bitcoin’s rise above $100,000.

After a previous decline, there is now a renewed positive sign as prepared by the CMF, reading +0.11. Increased sales may keep the price from falling. Only if dogecoin moves above $0.24 can the bearish trend be stopped.

However, Dogecoin moved down to the lower band, a brief correction could happen soon, as seen by Bollinger Bands. Should the $0.21 mark hold strong, the price might rebound and try to reach the $0.23 resistance mark. Volume is now almost cut by half, so the price may not move much for the time being.

Liquidation Trends and Market Volatility

Dogecoin price futures liquidations in the last month indicate the market is very volatile. During mid-May, forced liquidations as a result of price drops were at least $14 million within 12 hours. When the price reaches $0.25 to $0.30 and then sharply falls, leveraged long traders are often affected.

On the other hand, short liquidations occur when the price rallies unexpectedly. Spikes in short liquidations happened in late April and early May, reaching $7 million to $14 million during brief price recoveries. This pattern shows how leveraged positions on both sides face forced exits during volatile swings.

Dogecoin’s price has gone from near $0.05 to around $0.30 in the last month. The higher the volatility, the greater the volume of liquidation. A quick drop results in extended liquidations, while a strong rise instigates quick liquidations. As a result of this pull between traders, the price of the token keeps fluctuating. At the time of writing DOGE was at $0.2241.