Dogecoin (DOGE) is still encountering strong selling pressure as whales continue to dump huge volumes of the meme token, increasing urgency for critical support to hold.

For the past week, crypto analyst Ali Martinez has noted that Dogecoin whales have sold around 570 million DOGE tokens.

This wholesale sell-off has created massive oversupply in the market, putting more pressure on the token to decrease.

Chart: Ali Martinez

The decline in whale activity also indicates weakening confidence from big investors in the cryptocurrency, which is a bearish sign for current holders.

Dogecoin is presently trading hands at $0.1604, down 1% for the day.

Furthermore, trading volume has dropped 25%, and traders' sentiment is turning increasingly bearish as technical indicators signal more downfall.

At the moment, DOGE is technically below its 50-day ($0.182) and 200-day ($0.224) Exponential Moving Averages (EMAs). A bearish crossover between the EMAs has also been created, which may mean further price downfall.

Recently, the Libdogecoin v0.1.4 update brought improvements in security, performance, and blockchain development tools to better make the network more robust and developer-friendly.

The 200-day EMA on the weekly timeframe at $0.142 acts as a strong support level. If DOGE manages to rebound from here and reclaim the 50-day EMA, a bullish rally could follow. However, if this support breaks, further downside is likely.

The post Dogecoin: Whales Offload 570M DOGE As Selling Pressure Mounts; Can DOGE Bounce Back? appeared first on Benzinga.