Dogecoin (DOGE) experienced a sharp decline recently, and further losses appear likely as technical indicators reveal a double-top pattern on the daily chart. With DOGE's price plunging 26% from a peak of $0.1900, concerns are mounting about a continued downturn in value.
The double-top formation suggests bearish sentiments, especially as DOGE fell below critical support levels at $0.2113—the neckline of the pattern. This loss of support coincides with an observed trend of whale investors starting to offload their holdings. Data from Santiment indicates a decline in the number of tokens held by significant investors, with those possessing between 100,000-1 million coins reducing their holdings from 9.2 billion in March to 8.93 billion now. Such movements among whales usually raise red flags for the broader market.
Developments in trading strategies are heavily influenced by the time of year, with June historically being a challenging month for major cryptocurrencies like Bitcoin and Ethereum, contributing to investor reticence and sell-offs. Former Dogecoin promoter Elon Musk's transition away from his role in government could further impact sentiment around the coin.
Looking ahead, should DOGE manage to reclaim the $0.2113 level, it may provide bulls with a chance to regain control and reverse the bearish trend. If the price continues on its current path, the next support target is around $0.1300, which may raise alarms if broken, as the subsequent support is at $0.08057.
The double-top formation suggests bearish sentiments, especially as DOGE fell below critical support levels at $0.2113—the neckline of the pattern. This loss of support coincides with an observed trend of whale investors starting to offload their holdings. Data from Santiment indicates a decline in the number of tokens held by significant investors, with those possessing between 100,000-1 million coins reducing their holdings from 9.2 billion in March to 8.93 billion now. Such movements among whales usually raise red flags for the broader market.
Developments in trading strategies are heavily influenced by the time of year, with June historically being a challenging month for major cryptocurrencies like Bitcoin and Ethereum, contributing to investor reticence and sell-offs. Former Dogecoin promoter Elon Musk's transition away from his role in government could further impact sentiment around the coin.
Looking ahead, should DOGE manage to reclaim the $0.2113 level, it may provide bulls with a chance to regain control and reverse the bearish trend. If the price continues on its current path, the next support target is around $0.1300, which may raise alarms if broken, as the subsequent support is at $0.08057.
