Dogecoin (DOGE) is facing increasing downward pressure as large sell-offs by whale investors weaken price support.

Over the past 48 hours, whales have sold over 1.32 billion DOGE, pushing the price near critical levels. A breakdown is increasingly likely unless the market shows signs of a reversal.

Whale Sell-Offs Intensify

Crypto analyst Ali reports that whale investors holding over 1 billion DOGE have sold more than 1.32 billion tokens in just two days. This significant sell-off has negatively impacted market sentiment, often a precursor to further price declines.

Source: Ali Martinez, X

Charts show Dogecoin's price dropping from the $0.18–$0.20 range to approximately $0.14 as whale holdings decreased. Each recovery attempt has been met with lower volume, indicating weakening demand. This distribution pattern creates significant selling pressure, challenging many traders. The price currently hovers around $0.14, vulnerable to a break without increased buying pressure.

Critical Support Level at $0.13

Ali's analysis highlights a rising trendline, supporting DOGE since October 2023, intersecting with the 61.8% Fibonacci retracement level at $0.13. This level represents significant technical support.

Source: Ali Martinez, X

Historically, DOGE has reversed trends at this trendline, making $0.13 a crucial support level. However, the current downward trend is pushing DOGE towards this level, increasing volatility. A break below $0.13 would establish a new lower low, increasing the likelihood of further declines.

Breaking Below $0.13: Potential for Panic Selling

Falling below the $0.13 support would invalidate DOGE's multi-month bullish structure, potentially triggering a move towards deeper support levels around $0.10 and $0.085, previously tested in 2023. Bearish signals are present in both the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD). Weakening volume on upward movements further suggests a potential sell-off if the $0.13 support breaks.

Path to Recovery

For upward momentum, DOGE needs to break above $0.15 with strong support at $0.13, indicating absorption of the sell-off. A more significant recovery, reversing the current trend, would require a break above $0.18, potentially pushing DOGE towards the $0.22 range. However, given current volume and whale activity, a recovery likely depends on a shift in market sentiment and increased buying interest.

Wyckoff Accumulation Pattern?

Trader Tardigrade suggests DOGE may be in the Wyckoff Accumulation phase, hinting at a potential bullish breakout. Tardigrade notes the recent test of the $0.142 support level as crucial for the uptrend.

Source: Trader Tardigrade, X

According to Tardigrade, DOGE is in phase D of the Wyckoff model, characterized by higher lows and Last Points of Support (LPS) before a rally. Breaking above the $0.178 resistance level could propel DOGE towards $0.21. However, failure to hold the $0.142 support could negate this bullish outlook.

The coming days will be crucial in determining whether DOGE can maintain current support and initiate a new upward trend.