Dogecoin risks further decline as whales dump 750 million DOGE

Key takeaways

Dogecoin (DOGE) trades around $0.068 on Wednesday, recovering slightly after falling to a new yearly low of $0.066 during the previous session.

Santiment data shows that whale wallets holding between 100,000 and 100 million DOGE collectively offloaded 750 million tokens since November 3.

A breakdown below $0.065 could trigger further losses, while buyers must reclaim $0.077 and $0.079 to improve the cryptocurrency’s technical outlook.

Dogecoin (DOGE) is attempting a modest recovery on Wednesday after falling to its lowest price of the year, but persistent whale selling and weakening market indicators suggest that the meme coin remains vulnerable to further losses.

DOGE trades around $0.068, slightly above Tuesday’s yearly low of $0.066, as buyers attempt to stabilize the cryptocurrency following its latest decline.

However, on-chain data shows that large holders have been reducing their exposure, adding to selling pressure at a time when broader market sentiment remains fragile.

With Dogecoin trading below its major moving averages, the $0.065 support level could determine whether the cryptocurrency stabilizes or extends its broader correction.

Dogecoin whales sell 750 million DOGE as confidence weakens

Large Dogecoin holders have continued reducing their positions, contributing to the meme coin’s recent price weakness.

According to Santiment’s Supply Distribution data, three categories of whale wallets have collectively offloaded approximately 750 million DOGE since November 3.

These include wallets holding between 100,000 and 1 million DOGE, those controlling between 1 million and 10 million tokens, and larger addresses holding between 10 million and 100 million DOGE.

The decline in holdings across these groups suggests that substantial market participants have been reducing their exposure rather than accumulating during the downturn.

For Dogecoin, the latest selling activity coincides with a broader decline that pushed the cryptocurrency to a new yearly low.

Broader on-chain indicators reinforce the cautious outlook for Dogecoin. According to CryptoQuant’s market summary, both DOGE spot and futures markets are showing large whale orders alongside elevated trading activity.

The platform also identifies sell-side dominance across both markets, suggesting that selling pressure continues to outweigh buying interest.

The combination of large orders and heightened market activity can indicate that major participants are actively repositioning during periods of volatility.

The weakness in both spot and derivatives markets is particularly notable because it indicates that bearish sentiment is not limited to a single category of traders.

Dogecoin technical outlook: DOGE hits new yearly low of $0.066

Dogecoin’s technical outlook remains bearish following its decline to a new yearly low. At the time of writing on Wednesday, DOGE trades around $0.068, recovering slightly after touching $0.066 during the previous session.

Despite the modest rebound, the cryptocurrency continues trading below its major Exponential Moving Averages (EMAs), indicating that sellers retain control of the broader trend.

The 50-day EMA stands near $0.079, while the 100-day EMA is positioned around $0.081.

Meanwhile, the longer-term 200-day EMA sits at approximately $0.088, creating another significant resistance barrier above the current market price.

Trading below all three moving averages reflects the weakness in Dogecoin’s technical structure and suggests that recovery attempts could encounter renewed selling pressure.

Momentum indicators also support the bearish outlook. The daily Relative Strength Index (RSI) has declined into the low-30s, indicating weak buying momentum and suggesting that DOGE is approaching oversold territory.

Meanwhile, the Moving Average Convergence Divergence (MACD) remains slightly negative below the zero line, indicating that bearish momentum continues to dominate.

The combination of weak momentum and overhead resistance suggests that Dogecoin’s recent recovery may remain limited unless buying demand improves.

Dogecoin faces an important technical test as its price approaches the $0.065 support level. This horizontal support represents the next significant downside threshold following Tuesday’s decline to $0.066.

If DOGE fails to defend $0.065, sellers could regain momentum and push the cryptocurrency toward fresh yearly lows.

A decisive breakdown below this level would reinforce the broader bearish trend and suggest that the recent recovery attempt has failed.

Despite the prevailing bearish conditions, Dogecoin could attempt a short-term recovery if buyers begin accumulating near current levels.

The first resistance stands around $0.068, where the cryptocurrency is currently trading. A sustained move above this level could encourage buyers to target the next horizontal resistance at $0.077.

Beyond this barrier, the 50-day EMA near $0.079 represents another important hurdle. A breakout above the 50-day EMA would improve Dogecoin’s short-term technical structure and potentially open the door for a recovery toward the 100-day EMA at $0.081.

Further resistance stands at the 200-day EMA near $0.088, followed by the stronger horizontal barrier around $0.102.

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